Thomas Cook (India) Ltd Falls to 52-Week Low of Rs.108.9

Recent Price Movement and Market Context

On the day the new low was recorded, Thomas Cook (India) Ltd’s share price fell by 1.22%, aligning with the sector’s overall performance. Despite opening the day with some optimism, the broader Sensex index reversed gains to close 194.51 points lower at 83,359.08, down 0.11%. The Sensex remains 3.36% below its 52-week high of 86,159.02, indicating a cautious market environment. Notably, the Sensex is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, suggesting mixed medium-term signals.

Thomas Cook’s stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing bearish momentum. This technical positioning highlights the stock’s struggle to regain upward traction amid market headwinds.

Performance Over the Past Year

Over the last 12 months, Thomas Cook (India) Ltd has underperformed significantly, delivering a negative return of 8.33%. This contrasts sharply with the Sensex’s positive return of 9.73% and the broader BSE500 index’s 13.77% gain over the same period. The stock’s 52-week high was Rs.188.45, indicating a substantial decline of approximately 42% from that peak.

Financial Metrics and Profitability Analysis

The company’s latest quarterly results showed flat performance, with earnings per share (EPS) at a low Rs.0.89. A notable aspect of the profit before tax (PBT) composition is the significant contribution from non-operating income, which accounted for 45.61% of PBT. This reliance on non-core income sources may be a factor in the muted market response to the earnings announcement.

Despite the subdued recent results, Thomas Cook maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure with minimal leverage. This financial prudence provides some stability amid earnings volatility.

Growth and Valuation Metrics

Thomas Cook has demonstrated healthy long-term growth, with net sales increasing at an annualised rate of 41.27% and operating profit growing at 21.12% per annum. The return on equity (ROE) stands at a moderate 10.2%, indicating reasonable profitability relative to shareholder equity.

The stock’s valuation appears attractive on a price-to-book (P/B) basis, trading at 2.2 times book value, which is a discount compared to its peers’ historical averages. However, the price-to-earnings-to-growth (PEG) ratio is elevated at 11.2, reflecting the disparity between earnings growth and current market price performance.

Institutional Investor Activity

Institutional investors have increased their holdings by 1.45% in the previous quarter, now collectively owning 14.22% of the company’s shares. This uptick in institutional participation suggests a degree of confidence in the company’s fundamentals despite recent price weakness.

Sectoral and Market Influences

The tour and travel services sector has faced a mixed environment, with fluctuating demand and evolving consumer behaviour impacting companies unevenly. Thomas Cook’s performance must be viewed within this broader context, where sectoral headwinds have contributed to the stock’s recent decline.

Mojo Score and Rating Update

Thomas Cook (India) Ltd’s Mojo Score currently stands at 37.0, reflecting a Sell rating. This represents a downgrade from the previous Hold rating, which was revised on 3 Nov 2025. The market capitalisation grade is low at 3, consistent with the company’s small-cap status and recent price performance.

Summary of Key Metrics

To summarise, Thomas Cook’s stock has experienced a notable decline to Rs.108.9, its lowest level in the past year. The stock’s underperformance relative to the Sensex and BSE500 indices, combined with flat quarterly earnings and a high proportion of non-operating income, have contributed to the cautious market stance. Nevertheless, the company’s strong sales growth, low leverage, and institutional investor interest provide a nuanced picture amid the recent price weakness.

Market participants will continue to monitor the stock’s movement relative to its moving averages and sector trends as the broader economic environment evolves.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →