Stay away from Thomas Cook: Lancelot D Cunha

Lancelot D Cunha of ITI Wealth Management told CNBC-TV18, "Thomas Cook (India) might come out with good numbers. Recently they have announced that they are going to take over and merge Sterling Holiday Resorts as part of their group.”

“This is a very large venture and to recover that kind of capital will take maybe 5-6 years. So from a financial standpoint, Thomas Cook may be under a lot of pressure and there could be further equity dilution, there could be need to raise capital and the return on equity will definitely come off. So at this point of time, it is better to stay away and maybe even exit from the stock if one can."