Hold Thomas Cook; target of Rs 262: Sharekhan

Sharekhan's research report on Thomas Cook

Thomas Cook India Limited’s (TCIL) consolidated revenue grew by 41% and operating profit grew by 70% YoY in FY2017, largely driven by consolidation of acquired Kouni’s international travel business and six acquisitions done by its non-travel services business (Quess Corp) during the fiscal. The domestic outbound travel business registered single-digit revenue growth despite a tough global environment and slowdown in the domestic market. Revenue of Quess Corp and Sterling Holidays (vacation ownership business) grew by 21% and 12%, respectively, during the current fiscal.

Outlook

We maintain our Hold recommendation on the stock with a revised sum-of-the-parts (SOTP)  price  target  of  Rs.262.