IIFL
Cox & Kings (Buy)
CMP: Rs 139.85
Target: Rs 185
Outbound travel is the most important component of C&K’s India offerings as it accounts for 67 per cent of the domestic revenues. C&K India segment revenues have witnessed robust 26 per cent CAGR (compound annual growth rate) over the past 4 years; we expect India business to motor along with 21 per cent revenue CAGR driven by rising disposable incomes and growing share of organised travel segment. Cox & Kings acquired Holidaybreak for an EV of $730 million which brought a spate of four new operating divisions — education, adventure, hotel breaks (for short trips) and camping, which have leading positions in the UK and other major European markets. The acquisition adds new product avenues for C&K and expands C&K’s buying scale as it now includes HBR’s European operations.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.