Thomas Cook may settle around Rs 65: SP Tulsian

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Thomas Cook may settle around Rs 65: SP Tulsian

Thomas Cook may settle around Rs 65, says SP Tulsian, sptulsian.com.

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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

Thomas Cook may settle around Rs 65, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "This is on the confirmation that the promoter Thomas Cook PLC, they have officially confirmed that now they are officially going to get or entertain the offers, which they have been receiving. In fact I have been maintaining my extremely positive view, this stock was recommended on 16th January in our multibagger segment at Rs 38 that means less than a month and today it is frozen at Rs 55."

He further added, "They have 180 of their own branches, 180 as the preferred sales agents and of their 180 owned branches, 153 branches are owned by the company. The value of which is I am estimating at about Rs 500 crore, the real estate value and if you see the business model, if you try to give a PE multiple of maybe about 15-16 times also that gives a core valuations of about Rs 1000 crore. So, the overall valuation of the company works at about Rs 1500-Rs 1600 crore that translates into a price per share of about Rs 75-80 and since the 77% stake is going to get placed for acquisition, the open offer practically will make the company as delisting candidate."

"Whatever price the Thomas Cook PLC is going to get, the same price is going to come to the public shareholder also. So, I am taking a price call of eventually at about Rs 75. So, maybe if that is the valuation call, one can look to a price of Rs 64-65 where it should really settle because since the confirmation has come officially from the promoter and the kind of pledge they have made with RBS of the entire 77% stake a month back, at that time market had given a knee-jerk reaction that it is a negative news. In fact that was indication that the stake sale by the principles seen in the pipeline."