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International Travel has target of Rs 175: S Chhabria
Sanjay Chhabria, Equity Analyst is of the view that International Travel House has target of Rs 175. It is an ITC group company, which is India’s leading travel and tourism company offering a full bouquet of travel solutions like car rentals, business travels, inbound and out bound leisure trips, event management
Chabria told CNBC-TV18, "International Travel is an ITC group company, which is India's leading travel and tourism company offering a full bouquet of travel solutions like car rentals, business travels, inbound and out bound leisure trips, event management etc. The company serves as a one stop shop for tourists whether corporate or leisure and has strong presence in the corporate travel segment and car rentals, with clients such as Infosys, Citi Bank, Siemens apart from the ITC Group. Looking at the boom time being witnessed by the travel and tourism industry higher disposable incomes have resulted in more Indians going for holidays in India and abroad. These ogres well for the company and a window of opportunity lies for the company."
He further added, "For FY08, the company posted a net profit of Rs 10.5 crore on the net sales of Rs 79 crore on a small equity of Rs 8 crore, the EPS stood as 13.3 and the dividend declared was 30%. So at the current price of Rs 100 the dividend deals is also of around 3% and given the strong parentage of ITC and the good times being witnessed by the travel industry, the stock holds a good potential for in an upgradation in the medium term. I have a price target of Rs 175 and the current levels of market cap is very low of around Rs 80 crore."
Disclosure: Analyst doesn't hold the above stock but have recommended to his clients.
