Should long term investors bet on Waterways Leisure IPO? (opens original article in a new tab)

Waterways Leisure Tourism is seeking to raise ₹585 crore through an IPO, but faces challenges including negative cash flow, high attrition, and regional risks, with a high P/E valuation compared to peers.

• Waterways Leisure Tourism plans to raise ₹585 crore through an IPO to fund lease payments and corporate purposes
• The company has negative cash flow from operations, high attrition rate, and faces risks from security threats and regional conflicts
• The IPO seeks a P/E multiple of 112, significantly higher than its hotel and entertainment peers' P/E range of 5-41
• Revenue declined 2% YoY to ₹579.7 crore with a 69% drop in net profit to ₹52.1 crore in FY26