Thomas Cook (India) Limited

Consumer Cyclical — Travel Services · NSE

₹101.90+₹1.50 (+1.49%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of Thomas Cook (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Thomas Cook (India) Limited offers integrated travel services in India and internationally. It operates through Financial Services, Travel and Related Services, Leisure Hospitality and Resorts Business, and Digiphoto Imaging Services segments.

IndustryTravel Services

SectorConsumer Cyclical

Employees10,000

Annual revenue₹8,231 Cr

How does it make money?

Turns over ₹8,231 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 10,000 employees supports ₹82.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹82.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 11.1% and earnings to grow about 48.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.1%

Est. earnings growth+48.3%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +66% while net margin moved +1938% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+66%

Margin effect+1938%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.23 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

22.4x

3Y Median

30.4x

40 monthly readings · mean 536.9x · range 16.5x–2606.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 26% below its 3y median of 30.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 68% below the peer median of 69.2x.

vs. its own history

Cheap

30.4x median over 40 months · -26%

vs. sector peers

Cheap

69.2x median of 4 peers · -68%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.0x

PEG

0.10

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 4.9% to 6.6% over 3 years.
Return on equity is rising
ROE has improved from 0.4% to 8.6%.
Return on capital is rising
ROCE has improved from 2.7% to 10.5%.
Very low debt
Debt/Equity of 0.21x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Short-term liquidity is tightFinancial
Current ratio of 0.86 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.9% to 6.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 26% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹517 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 18.5% CAGR
Latest reported year was -13.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹517 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹4,793 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.4x

Fair

Fairly valued against the generic band

P/B Ratio

1.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.54

Profitable

Profitable on a per-share basis

ROE

8.6%

Moderate

Moderate capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

-13.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-0.6%

Falling

Profits are shrinking

Dividend Yield

0.49%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹517 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

15.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

2.4%

Weak

Thin margins leave little room for error

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.86

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.23

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

101.9 / 105.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,952 Cr	₹7,212 Cr	₹7,989 Cr	₹8,231 Cr	+18.5%
EBITDA	₹242 Cr	₹515 Cr	₹579 Cr	₹544 Cr	+31.1%
EBITDA Margin	4.9%	7.1%	7.3%	6.6%	—
PAT (Net Profit)	₹6 Cr	₹259 Cr	₹254 Cr	₹219 Cr	+223.6%
EPS	₹0.1	₹5.57	₹5.46	₹4.69	+260.6%
ROE	0.4%	12.6%	11.3%	8.6%	—
ROCE	2.7%	12.8%	13.2%	10.5%	—
Total Debt	₹539 Cr	₹418 Cr	₹465 Cr	₹539 Cr	+0.0%
Free Cash Flow	₹583 Cr	₹725 Cr	₹600 Cr	₹517 Cr	-3.9%

🟢 Revenue has grown at 18.5% a year over 3 years.

🟢 EBITDA has grown at 31.1% a year over 3 years.

🟢 EBITDA Margin has risen from 4.9% to 6.6% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 223.6% a year over 3 years.

🟢 EPS has grown at 260.6% a year over 3 years.

🟢 ROE has risen from 0.4% to 8.6% over 3 years (+8.2 pts).

🟢 ROCE has risen from 2.7% to 10.5% over 3 years (+7.9 pts).

🟡 Total Debt has been broadly flat over 3 years (0.0% a year).

🔴 Free Cash Flow has shrunk at 3.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,899 Cr

Total Liabilities

₹5,375 Cr

Cash & Equivalents

₹960 Cr

Operating Cash Flow

₹643 Cr

Capex

-₹126 Cr

Shareholding (proxy)

Institutional Holding

11.4%

Insider Holding

65.7%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

27 Aug 2026

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹131

+28.6% vs CMP

Target Range

₹122 – ₹140

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

Thomas Cook (India) Share: Bull Case vs Bear Case for 2026

Univest, 28 Sept

Thomas Cook (India) Limited (NSE:THOMASCOOK) Looks Interesting, And It's About To Pay A Dividend

Simply Wall Street, 23 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Thomas Cook India Surges 16% As Investors Chase Travel Stock Amid Strong Tourism Outlook

HDFC Sky, 08 Jun

Thomas Cook India to hold analyst call with Arihant Capital on Sep 29

scanx.trade, 22 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Thomas Cook (India) Slips 2.32% to ₹109.91: THOMASCOOK.NS Holds Above Key Support - Vol Target Rebalance

siam.in, 08 Sept

'Time to cherry pick again': Porinju Veliyath says small and midcaps have bottomed & Thomas Cook is his la

The Economic Times, 11 Jun

Watch Items

Revenue growth is negative (-13.1%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑