Limited downside in International Travel House: Tater

1037 Investors following Int Travel Hous. Share this News with them.

0

Like this story, share it with millions of investors on M3

Limited downside in International Travel House: Tater

Limited downside in International Travel House, says Ashish Tater of Fort Share Broking.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by Ashish Tater See what other Experts & Brokerages are saying about Int Travel Hous See messages about Int Travel Hous Int Travel Hous BSE | NSE 01/01/70 Are Mutual Funds betting on Int Travel Hous?

Limited downside in International Travel House , says Ashish Tater of Fort Share Broking.

Tater told cNBC-TV18, "International Travel House is a low trading stock with low volumes but I see true value in the business. Now a promoter group like ITC which owns 61% and has got strong brand equity like ITHL which is pioneer in the domestic airspace, air ticketing, conference management, I think the stock is a no brainer. Look at the valuation of Cox & Kings, I am not taking a call that this should be a replicated model of Cox & Kings but going forward this particular concept when it enters into strong hand the stock will definitely get re-rated. If I see into this particular business they have got clientele like NDTV, HCL, Samsung, Mac and Infosys. And the company is going to clock Rs 22 of EPS for this year and it's a very small paid up equity of just Rs 8.7 crore and next year the company would clock close to Rs 29-30."

He further added, "If Cox & Kings deserves to trade at 20-25 times forward, I think this particular stock because of ITC should trade close to 15-16 times forward. That means Rs 385 in the longer term and on charts the stock should test Rs 320-330 levels. But what is interesting me into this company for next year is 3 great developments, thanks to the World Cup, the M&A activity because of economic upside that we are seeing and the economic boom and also this can be used as a concept stock once this is accumulated by large players."

"This stock is having a very low free float and need not be bought at just one go, it should be bought on a systematic basis. In the longer term these stocks are set to give good returns. I see limited downside on the stock and potential upsides and these are all multi-bagger ideas where the very small amount should be invested rather than huge chunks taking into a position into a stock because if 8 out of 10 actually clicks with our targets I think the stock gives you 35-40% in next 6 to 9 months, which is a decent return onto any portfolio but there is already a liquidity risk into the stock."