Understanding the Current Rating
The 'Sell' rating assigned to Thomas Cook (India) Ltd indicates a cautious stance for investors, suggesting that the stock may underperform relative to the broader market or its sector peers in the near term. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall Mojo Score, which currently stands at 37.0, reflecting a significant decline from the previous score of 58. The rating change occurred on 03 Nov 2025, signalling a reassessment of the company’s prospects by MarketsMOJO analysts.
Here’s How the Stock Looks Today
As of 30 December 2025, Thomas Cook (India) Ltd’s financial and market data reveal a challenging environment for the company. The stock has experienced a notable decline in returns, with a year-to-date (YTD) performance of -29.28% and a one-year return of -30.85%. This contrasts sharply with the broader BSE500 index, which has delivered a positive return of 5.24% over the same period, highlighting the stock’s underperformance relative to the market.
Quality Assessment
The company’s quality grade is assessed as average. This reflects a stable but unspectacular operational performance. Recent quarterly results show a decline in profitability, with the profit after tax (PAT) for the quarter ending September 2025 falling by 21.9% compared to the previous four-quarter average. Profit before tax excluding other income (PBT less OI) also declined by 19.0% in the same period. Notably, non-operating income constitutes 46.14% of the profit before tax, indicating a significant reliance on income sources outside the core business operations. This reliance may raise concerns about the sustainability of earnings and the company’s operational efficiency.
Valuation Perspective
Despite the weak operational performance, the valuation grade is considered attractive. This suggests that the stock is trading at a relatively low price compared to its earnings, book value, or cash flow metrics, potentially offering value for investors willing to accept the associated risks. However, the attractive valuation alone does not offset the concerns raised by the company’s financial trends and technical outlook.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade is flat, indicating stagnation in key financial metrics. The company’s recent quarterly performance has not shown meaningful improvement, and the downward trend in profitability metrics suggests ongoing challenges. The flat financial trend, combined with the heavy dependence on non-operating income, points to limited growth prospects in the near term. Investors should be cautious about the company’s ability to generate consistent earnings growth under current market conditions.
Technical Outlook
The technical grade is bearish, reflecting negative momentum in the stock’s price action. The stock has declined by 0.72% in the last trading day and has shown consistent weakness over multiple time frames: -4.29% over one week, -6.62% over one month, and -11.83% over three months. This sustained downward trend suggests that market sentiment remains subdued, and technical indicators do not currently support a reversal or recovery in the near term.
Implications for Investors
For investors, the 'Sell' rating on Thomas Cook (India) Ltd signals caution. The combination of average quality, attractive valuation, flat financial trends, and bearish technicals suggests that the stock may continue to face headwinds. While the valuation may appeal to value-oriented investors, the operational challenges and negative price momentum warrant a careful assessment of risk tolerance and investment horizon.
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Sector and Market Context
Thomas Cook (India) Ltd operates within the Tour and Travel Related Services sector, which has faced significant volatility due to changing consumer behaviour, geopolitical factors, and economic uncertainties. The company’s small-cap status adds an additional layer of risk, as smaller companies often experience greater price fluctuations and liquidity constraints. Compared to the broader market, the stock’s underperformance over the past year underscores the challenges faced by the company in maintaining investor confidence and delivering shareholder value.
Conclusion
In summary, Thomas Cook (India) Ltd’s current 'Sell' rating by MarketsMOJO reflects a comprehensive evaluation of its present-day fundamentals and market dynamics as of 30 December 2025. Investors should weigh the company’s average operational quality, attractive valuation, flat financial trends, and bearish technical signals carefully before considering exposure to this stock. The rating serves as a guide to manage risk and align investment decisions with prevailing market realities.
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