Exit Thomas Cook: Devang Mehta

One can exit Thomas Cook, says Devang Mehta of Anand Rathi Financial Services.

Mehta told CNBC-TV18, "Thomas Cook has more to do with the recent news flow regarding its parent company, so it has been in negative news for all the wrong things. On the fundamentals the industry fundamentals are also deteriorated because of the way the rupee has fallen and also the winter season is traditionally the weakest season for travel operators and outbound travel is surely going to suffer because of the rupee depreciation that has happen."
He further added, "I guess the company is in a lot of problems. The euro zone region seems to be in a lot of problems. A lot of travelers are delayed there, plans are postponed for travel. I think the next 3-6 months will be tough quarter for the travel industry as well and for Thomas Cook as well. I think it is prudent to get out and rather invest in some good stock like JP Associates or something which could post the cool off in the interest rates and inflation cycle could do very well over the longer term period."