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Last Updated : Apr 05, 2018 05:48 PM IST | Source:

Buy Thomas Cook; target of Rs 320: Axis Direct

Axis Direct is bullish on Thomas Cook has recommended buy rating on the stock with a target price of Rs 320 in its research report dated March 12, 2018.

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Axis Direct's research report on Thomas Cook

Thomas Cook’s (TCIL) board has approved the proposal of a corporate restructuring exercise that would enable the company to focus on Travelrelated businesses and give its shareholders direct exposure to Quess. The contours as well as the timeline of the deal are yet to be disclosed.


Our take: (1) In the scenario that existing shareholders are given Quess shares on pro-rata and no distribution tax is applicable, our estimates on residual business of Travel, forex and vacation ownership imply a 25% upside from CMP; (2) If distribution tax of ~20% is applied, we recommend existing shareholders stay invested and not monetize Quess – a steady compounder given immense opportunity landscape in business services tied directly to macro, shift from unorganized to organized, and consolidation of vendor base. Retain BUY on TCIL and Quess. Our estimates, TP remain unchanged.

For all recommendations report, click here

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First Published on Mar 12, 2018 01:41 pm
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