Thomas Cook India Limited (TCIL) - is a Mumbai based company and one of the leading integrated travel services company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Value Added Services, Visa & Pass port services and E-Business.
The company set up its first office in India in 1881, operates leading B2C and B2B brands including Thomas Cook, SOTC, TCI, SITA, Asian Trails, Allied T Pro, Australian Tours Management, Desert Adventures, Luxe Asia, Kuoni Hong Kong, Sterling Holiday Resorts Limited, TC Forex, Distant Frontiers, TC Tours, TC Visa, Travel Circle International Limited, Ithaka, Digiphoto Entertainment Imaging (DEI), Private Safaris East & South Africa.
The Tho mas Cook India Group spanning 25 countries across 5 continents, a team of over 8000 associates and a combined revenue in excess of Rs. 1900 crore for the financial year ended March 31, 2022. The Group is today one of the largest travel service provider networks headquartered in the Asia Pacific region.
TCIL is owned by Canadian Private Equity giant Fairfax Holding and has close to 72.34% stake in it. TCIL has divided its business into four verticals - Foreign Exchange& related services, Travel& related services, Leisure Hospitality & Resorts and Digital imaging solutions. Considering several acquisitions made in the recent times, the management intends to take a pause and consolidate & grow the current verticals.
Travel and related services is the core segment of the company contributing -80% of the revenues and 60% of the EBITDA. Last three years have been difficult for the company citing Jet Airways grounding, Cox and Kings Bankruptcy and the recent virus outbreak. As most of the countries already opened their borders for travel and tourism thanks to vaccination and revenge travel, TCIL will see exceptional growth in the next two to three years quarters which may result in stock re-rating. Its other business like Foreign Exchange (Financial Services), Digital imaging solutions and Leisure Hospitality & Resorts - owns Sterling Holidays which the company had acquired in early 2014 will start doing well from now.
Thomas Cook India should be able to recover smoother and faster owing to its strong balance sheet strength as it is sitting on a cash pile of 850 crore on its balance sheet (ending Q1FY23) and coupled with marquee promoter backing. Investor are advised to buy on every declines for more than 100% returns in 12 to 18 months.
