Current Rating and Its Context
On 03 November 2025, MarketsMOJO revised the rating for Thomas Cook (India) Ltd from 'Hold' to 'Sell', reflecting a significant change in the assessment of the stock's prospects. The Mojo Score, a composite indicator of the stock’s overall health and potential, dropped by 21 points from 58 to 37, signalling a more cautious stance. This rating encapsulates a comprehensive evaluation of the company’s quality, valuation, financial trends, and technical outlook.
Here’s How the Stock Looks Today
As of 01 February 2026, Thomas Cook (India) Ltd remains a small-cap player in the Tour and Travel Related Services sector. The company’s current financial and market data provide a clear picture of its challenges and opportunities, which underpin the 'Sell' rating.
Quality Assessment
The quality grade assigned to Thomas Cook is 'average'. This reflects a middling performance in operational efficiency, profitability, and business stability. The company’s recent quarterly results indicate 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. Similarly, Profit Before Tax excluding Other Income (PBT less OI) decreased by 19.0% over the same period. These figures suggest that the company is facing headwinds in maintaining consistent earnings growth, which weighs on its quality score.
Valuation Perspective
Despite the challenges, the valuation grade is considered 'attractive'. This suggests that the stock is trading at a price level that may offer value relative to its earnings and asset base. Investors looking for potential bargains might find the current price appealing, especially given the broader market context. However, valuation alone does not offset the risks posed by the company’s operational and financial trends.
Financial Trend Analysis
The financial grade is described as 'flat', indicating stagnation in key financial metrics. The company’s earnings and profitability have not shown meaningful improvement recently, and the flat trend reflects a lack of momentum in financial performance. Additionally, non-operating income constitutes a significant 46.14% of Profit Before Tax, which may raise concerns about the sustainability of earnings from core operations. This flat financial trend contributes to the cautious rating.
Technical Outlook
From a technical standpoint, the stock is graded as 'bearish'. Price movements over various time frames reveal a downward trajectory. As of 01 February 2026, the stock has declined by 26.94% over the past year, significantly underperforming the broader BSE500 index, which has delivered positive returns of 7.79% in the same period. Shorter-term trends also show negative returns: -17.45% over one month and -24.07% over three months. This bearish technical outlook signals weak investor sentiment and selling pressure.
Stock Returns and Market Performance
The latest data shows that Thomas Cook’s stock price has struggled to gain traction. The one-day change is a modest +0.16%, but this is overshadowed by sustained declines over longer periods. Year-to-date, the stock is down 17.34%, and over six months it has fallen 23.32%. These returns highlight the stock’s underperformance relative to the broader market and reinforce the rationale behind the 'Sell' rating.
Operational Highlights
Recent quarterly results for September 2025 reveal flat overall performance, with key profit metrics declining as noted earlier. The significant proportion of non-operating income to total profit before tax suggests that core business operations are under pressure. This operational backdrop, combined with the financial and technical indicators, paints a challenging picture for the company’s near-term prospects.
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What the 'Sell' Rating Means for Investors
The 'Sell' rating from MarketsMOJO indicates that investors should exercise caution with Thomas Cook (India) Ltd at this time. It suggests that the stock is expected to underperform relative to the broader market and may carry elevated risks. The combination of average quality, attractive valuation, flat financial trends, and bearish technical signals implies that the company faces significant challenges that could weigh on its stock price in the near to medium term.
For investors, this rating serves as a signal to reassess exposure to the stock and consider risk management strategies. While the valuation appears attractive, the underlying operational and financial concerns suggest that the stock may not be a suitable candidate for accumulation or long-term holding until there is clearer evidence of a turnaround.
Sector and Market Context
Operating within the Tour and Travel Related Services sector, Thomas Cook faces a competitive and cyclical environment. The sector’s recovery post-pandemic has been uneven, and companies with weaker fundamentals or inconsistent earnings growth have struggled to regain investor confidence. The stock’s underperformance relative to the BSE500 index underscores the challenges faced by Thomas Cook in regaining market favour.
Summary
In summary, Thomas Cook (India) Ltd’s current 'Sell' rating reflects a comprehensive evaluation of its present-day fundamentals and market performance as of 01 February 2026. The rating was last updated on 03 November 2025, but the analysis here incorporates the latest data to provide a current perspective. Investors should note the stock’s declining returns, flat financial trends, and bearish technical outlook, balanced against an attractive valuation. This combination suggests caution and a need for close monitoring of future developments before considering any investment in the stock.
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