Thomas Cook can touch Rs 75: SP Tulsian

Thomas Cook can touch Rs 75, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "Infact the tours and travel company have been into the lime light and if you see the stock price having moved for Cox & Kings and Thomas Cook is directly comparable with that. May be Thomas Cook is a smaller in size than Cox & Kings but this has always been traditionally ruling at a high PE multiple and if you see they have the year ending at December. For December 2010 company has posted a topline of Rs 310 crore with EPS of close to about Rs 2.25. But looking to their first half results where they have posted a topline of Rs 185 crore, I think the company should be able to post an EPS of Rs 3 plus and translates into PE multiple of close to about 16-16.5."
He further added, "This is a debt free company and in this stock we have been hearing at frequent interval that probably there could be a delisting move because of the 77% stake held by the promoters, overseas promoter, so that is an extra trigger."
"If you see Cox & Kings, it is ruling at a PE multiple of close to about 20 and as I said that Thomas Cook always has been ruling at a higher PE multiple and if you see the stocks having corrected quite a lot