SP Tulsian positive on Thomas Cook, Cox & Kings

8066 Investors following Thomas Cook. Share this News with them.

0

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

SP Tulsian positive on Thomas Cook, Cox & Kings

SP Tulsian, sptulsian.com is positive on Thomas Cook and Cox & Kings.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Thomas Cook See messages about Thomas Cook

SP Tulsian, sptulsian.com is positive on Thomas Cook and Cox & Kings .

Tulsian told CNBC-TV18, "Holding extremely positive view on Thomas Cook. After hearing yesterday Mr Madhvan, I don't think that he has hinted for the stake sale, but I don't think that one can rule out that possibility because if the promoters have pledged their 77% in favor of Royal Bank of Scotland that has to go as a part of financial assistance provided to the parent company in UK and they are going to realize huge amount of that by selling the stake in the company. See the present market cap - inspite of a 15% run the market cap of the company is Rs 800 crore, it's a debt free company and if you take the real estate held by Thomas Cook, I think the present value of property is about Rs 400 crore because the book value of those properties are at Rs 50 crore and if you have 180 own branches in 72 cities and 180 preferred sales agents, I think it has a tremendous network and many of them will really be eyeing this stake including Cox and Kings, Mercury Travels and may be the foreign people all that."

He further added, "I wont be surprised that if the stake sale happens and if you see the bidding happening may be at a price of Rs 72-75 this can just be a repetition of the price move we have seen in case of Aptech which has shot up from Rs 70 to about Rs 100. So, that kind of potential I see on the downside, I don't think that stock can really fall below Rs 32, I think yesterday was its 52 week low at Rs 32.50 where it has corrected to, but I don't think that it can really fall further from hereon."

"Cox and Kings are the front runner in the race to acquire Thomas Cook and if that happens I think Cox and Kings, that will really be a big booster for the company. Thomas Cook right now is ruling at a PE multiple of close to about 12-13. Cox and Kings is ruling at a PE multiple of 22-23. So, if the earnings of Thomas Cook get added to the Cox and Kings, one can understand the increase in the valuations or the earnings of the company. So, hence positive call on both from hereon."