B&K Securities initiates 'buy' rating on Thomas Cook, ups target by 20%

Thomas Cook is a leading travel and forex company offering global services with a focus on innovation. Expanding into resorts and souvenir imaging solutions through acquisitions. Sales are rebounding post-Covid, with long-haul leisure travel and other segments expected to drive 17.2 percent revenue growth by FY26.

Moneycontrol News

April 24, 2024 / 08:14 IST

Thomas Cook

26 Aug, 2025 12:21

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Brokerage B&K Securities has initiated a 'buy' rating on Thomas Cook India Ltd (TCIL) and increased the target price to Rs 250 a share, up 20 percent from the current market price.

Thomas Cook is a leading travel and forex company offering global services with focus on innovation. Expanding into resorts and souvenir imaging solutions through acquisitions. Sales are rebounding post-Covid, with long-haul leisure travel and other segments expected to drive 17.2 percent revenue growth by FY26.

B&K Securities said efficiencies and leverage to boost EBIT margins to 6.5 percent by FY26. Operating on low margins with negative working capital is a key strength. A potential resort business de-merger could unlock further value. B&K Securities initiates coverage with attractive EV/EBITDA of 12.8x FY26.

Following the exit of Cox & Kings and the pandemic, TCIL is now India's primary omni-channel travel service provider. It distinguishes itself by offering packaged experiences, particularly focusing on international destinations with competitive pricing and customisation. Through organic growth and acquisitions, TCIL has strengthened its global presence and profitability. After Covid, DMS International and MICE have rebounded, with expectations for increased long-haul travel sales and steady growth in other segments.

"We project a 18.1 percent CAGR for the travel segment from FY24 to FY26 along with EBIT margin improvement to 4.6 percent in FY26 from 3.5 percent in FY24 as the acquired businesses have also begun contributing to profitability. Margin expansion is expected to be driven by operating leverage, synergies from the integration of Thomas Cook and SOTC backend operations, cost restructuring within DMS entities, and the continued growth of digitalisation," B&K said.