[Swing] TBO TEK Entered at 1523
Business Model:
Operates B2B online travel platforms like TravelBoutiqueOnline.com.
Majority of revenue comes from airline and hotel bookings.
Financials:
Market Cap: ₹17,773 Cr.
Current Price: ₹1,637.
P/E Ratio: 81.4, which is below the industry average of 90.5.
ROE: 46%, indicating strong returns for shareholders.
ROCE: 42.9%, suggesting efficient use of capital.
Growth:
5-year Profit Growth: 46% CAGR.
3-year Sales Growth: 114%.
Operating margins have improved to ~18-20%.
Challenges:
High debtor days (867), potentially affecting cash flow.
No dividend payout despite consistent profits.
Valuation is steep at 16.5x its book value.
Shareholding:
Promoters: 44.4%.
FIIs: 43.06% (a good indicator of foreign investor confidence).
Peers:
Competitors like Easy Trip Planners and Yatra Online show lower valuations but may not match TBO Tek's profitability and growth metrics.
Recommendations/Insights:
Investment Perspective: The stock shows strong growth potential and profitability but is priced at a premium. Suitable for long-term investors focused on growth sectors.
Risks: High debtor days and lack of dividends might deter some investors.
Sector Outlook: Travel tech is poised for growth with increased global travel demand.
Do your own research before you take a trade. This post is for educational purpose
