Thomas Cook - In A Sweet Spot To Leverage Structural Tailwinds In The Travel Sector: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Thomas Cook India Ltd., India’s leading integrated travel and travel-related financial services company, is a strong play across the booming corporate/ leisure travel, forex and related services segments. We attribute the company’s sharp business revival across segments over the last few quarters to demand resurgence and internal initiatives, post sharp disruption seen during the pandemic. While the hospitality and imaging businesses have already surpassed pre-pandemic levels in FY23, we expect the forex business to do so in FY24, and the travel business to achieve the same in FY25. Margins too have risen sharply on rightsizing of branch network and digitization of multiple processes, which should deliver structural cost savings, going forward. With the company opting for an asset-light expansion model, we expect Thomas Cook's balance sheet strengthening to continue and return on equity to keep moving towards 20%. Post the sharp recovery in FY24, we build in revenue/Ebitda/profit after tax compound annual growth rate of 17%/21%/26% over FY24-26E, and initiate coverage with a 'Buy' rating; our target price of Rs 235 is based on 30 times FY26E earnings. Thomas Cook is in a sweet spot to benefit from sector tailwinds, supported by strong promoter/management team, a healthy balance sheet and improving return ratios that should support premium valuations..Click on the attachment to read the full report:.Dabur Q3 Results Review - Distribution Expansion Driving Share Gains: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Thomas Cook - In A Sweet Spot To Leverage Structural Tailwinds In The Travel Sector: Systematix

Initiates coverage with a 'Buy' rating; with target price of Rs 235, based on 30 times FY26E earnings.

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Thomas Cook - In A Sweet Spot To Leverage Structural Tailwinds In The Travel Sector: Systematix

Initiates coverage with a 'Buy' rating; with target price of Rs 235, based on 30 times FY26E earnings.

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