This newly listed company marks fresh 52-week high; stock climbs more than 72% in over a month

Shares of TBO Tek which debuted in mid-May this year marked their fresh 52-week high price in Monday’s trade at Rs 1,679.80 after global brokerage Goldman Sachs initiated coverage on the tour and travel company with a target of Rs 1970. The set target implies a potential upside of 24 per cent.

The stock considering the last close has already climbed over 72 per cent from its IPO issue price of Rs 920. This is after the stock made a solid debut with listing gains of 55 per cent on the NSE.

The brokerage views TBO Tek’s business model as having several positive characteristics such as positive asset-light balance sheet, negative working capital, strong free cash flow (FCF) generation and low competition & regulatory risks.

"We seeTBO’s business model as having multiple positive characteristics - exposed to a large and fragmentedTAM with secular growth tailwinds, a strong execution track record, an asset light balance sheet, negative working capital, strong FCF generation, and low competition/regulatory risks," the brokerage said in a note. 

Goldman Sachs also pointed out the company’s efforts towards consolidating demand-supply in a large, fragmented total addressable market (TAM).

Further, the brokerage expects the travel distribution platform’s FCF to PAT ratio to stay higher than 100 per cent. Also, operating leverage is seen to drive a 30/33 per cent EBITDA/Net income CAGR during FY24-30.

About TBO Tek

TBO Tek operates a global travel distribution platform offering air ticketing, hotel bookings, and travel packages in over 100 countries. The Company provides travel inventory, currency support, and forex assistance to buyers through its platforms TBO Holidays and Travel Boutique Online. It simplifies the business of travel for suppliers, retail buyers, and enterprise buyers in the travel and tourism industry