"Cox & Kings has to be under tremendous pressure in the
short-term. But eventually it is a very attractive buy around Rs 120-135
range because of a couple of reasons. The price, right now, is
reflecting the worst in that global scenario. Thus, we feel there is
hardly 10% downside on the stock."
He further added, "Take a call on our quant model that we have been
suggesting for various stocks like Sintex, United Breweries etc. In the
last five years, they have gone for inorganic growth. They have acquired
assets of high quality. That is what is attracting me at the current
market price. Holiday Breaks PLC, the company's recent acquisition last
year is very attractive for the future growth. It is a proper vertically
integrated play on the tourism sector."
"Now, if you look from valuation perspective, Thomas Cook recently got
acquired at Rs 14.8 annualised equivalent value. From FY13-end
perspective, we finished trading somewhere around at AV of almost 20%.
That means 30% minimum upside from next 18 months perspective. But we
feel that the stock should go and stabilise. Right now, it is bit
vibrating between this level of Rs 130 and 140. It will stabilise around
at Rs 170-175 levels. So, someone who is taking a call from next
six-twelve months perspective, I think he should be looking atleast 25%
jump from hereon."
"If I take a valuation call, we are roughly working out with the number
of close to Rs 188-202, depending upon how global scenario comes up in
next twelve-eighteen months. So, this stock is very safe and the worst
is already factored in into the stock price. Thus, if someone is taking a
bet, he has hardly anything to lose on downside and he can use the
fresh strategy to accumulate the stock. On upside, even if he gets Rs
170-175, he will make a handsome return of 25-30% in a very short span
of time."
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