Shares of TBO Tek gained as much as 2.84% during Thursday's trading session, touching an intraday high of Rs 1,733. Brokerage firm Nuvama has initiated coverage on the travel technology company with a 'Buy' rating and a target price of Rs 2,200.
According to an ET Now report citing a Nuvama research note, the brokerage expects TBO Tek to deliver strong growth over the coming years, supported by international expansion, operating leverage and an increasing contribution from the hotel segment.
Nuvama on TBO Tek
Nuvama has initiated coverage on TBO Tek with a 'Buy' rating and a target price of Rs 2,200. The brokerage expects the company to post a 19% revenue CAGR and 35% earnings CAGR during FY27-FY29E.
The growth outlook, according to Nuvama, is expected to be driven by international expansion, operating leverage and higher contribution from the hotel business.
The brokerage also highlighted TBO Tek's strong negative working capital profile and healthy return ratios, which it believes provide further support to its investment thesis.
TBO Tek Share Price, Valuation and Technical Indicators
TBO Tek is currently trading at a market capitalisation of around Rs 18,309 crore, while the stock's 52-week high stands at Rs 1,764.80.
On the valuation front, TBO Tek's price-to-earnings (P/E) ratio is 69.11, while its price-to-book (P/B) ratio stands at 11.8.
According to technical indicators on Trendlyne, TBO Tek's 14-day Relative Strength Index (RSI) is 51.7. An RSI reading below 30 is generally considered to indicate an oversold zone, while a reading above 70 is considered overbought. The stock is currently trading above all 8 of the 8 Simple Moving Averages (SMAs) tracked by the platform.
Disclaimer: This article has been written by Ritesh Presswala, who is not a SEBI-registered Research Analyst or an Investment Adviser. Ritesh Presswala and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
