Thomas Cook (India) Dominates Travel Industry with Impressive Financial Performance and Bullish Stock Trend

Thomas Cook (India) has been making waves in the travel services industry with its outstanding financial performance. The company's stock has recently been upgraded to a 'Buy' by MarketsMOJO, and for good reason.
In December 2023, Thomas Cook (India) reported a remarkable 70.92% growth in net profit, showcasing its strong financial standing. This trend has continued for the past 9 consecutive quarters, with the company's PBT LESS OI(Q) growing at an impressive rate of 128.4% and its NET SALES(HY) growing at 35.47%. Additionally, the company's ROCE(HY) is at a high of 13.15%, indicating its efficient use of capital.

From a technical standpoint, the stock is currently in a bullish range and has shown a 4.79% return since May 2024. Multiple indicators, such as MACD, Bollinger Band, and KST, also point towards a bullish trend for the stock.

One of the major factors contributing to Thomas Cook (India)'s success is its majority shareholders, the promoters. This shows a strong backing and confidence in the company's growth potential.

In terms of market performance, Thomas Cook (India) has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of 213.15%. Its market cap of Rs 9,447 crore makes it the second largest company in the travel services sector, only behind IRCTC, and constitutes 9.20% of the entire sector.

However, there are some risks to consider when investing in Thomas Cook (India). The company has a high debt to EBITDA ratio of -1.00 times, which may affect its ability to service debt. Additionally, its return on equity (avg) is at a low of 0.82%, indicating low profitability per unit of shareholders' funds. Furthermore, the company has shown poor long-term growth with a -2.32% annual growth rate in net sales over the last 5 years.

Despite these risks, the stock is currently trading at a fair value compared to its historical valuations. Its PEG ratio of 0.1 also suggests that the stock is undervalued, considering its impressive profit growth of 751% in the past year.

In conclusion, Thomas Cook (India) is a strong player in the travel services industry with a solid financial performance and a bullish trend in the stock market. While there are some risks to consider, the company's growth potential and market beating performance make it a 'Buy' for investors.