Académique Documents
Professionnel Documents
Culture Documents
BUY
CMP
179.00
Target Price
200.00
Index Details
Stock Data
Sector
BSE Code
Face Value
52wk. High / Low (Rs.)
Volume (2wk. Avg.)
Market Cap (Rs. in mn.)
SYNOPSIS
We initiated coverage of International Travel House
Ltd and set a target price of Rs. 200.00 for medium
term investment.
YEARS
Net Sales
EBITDA
Net Profit
EPS
P/E
FY14A
1717.11
359.80
181.07
22.65
7.90
FY15E
1820.14
387.91
199.18
24.91
7.18
FY16E
1938.45
422.56
220.12
27.53
6.50
PEER GROUPS
Company Name
International Travel House Ltd
Cox & Kings Ltd
Thomas Cook (India) Ltd
Trade Wings Ltd
CMP
MARKET CAP
EPS
P/E (X)
P/BV(X)
DIVIDEND
(Rs.)
179.00
157.30
102.80
72.00
Rs. mn.
1431.11
21475.80
25449.20
216.00
(Rs.)
22.65
8.27
1.86
0.53
Ratio
7.90
19.02
55.24
135.85
Ratio
1.09
1.89
5.69
3.27
(%)
42.50
20.00
37.50
0.00
Months
Mar-14
Mar-13
% Change
Net Sales
447.00
419.26
6.62
PAT
48.59
40.47
20.06
EPS
6.08
5.06
20.06
EBITDA
94.76
83.81
13.07
The companys net profit jumps to Rs. 48.59 million against Rs. 40.47 million in the corresponding quarter
ending of previous year, an increase of 20.06%. Revenue for the quarter rose by 6.62% to Rs. 447.00 million from
Rs. 419.26 million, when compared with the prior year period. Reported earnings per share of the company
stood at Rs. 6.08 a share during the quarter, registering 20.06% increase over previous year period. Profit before
interest, depreciation and tax is Rs. 94.76 million as against Rs. 83.81 million in the corresponding period of the
previous year.
Break up of Expenditure
Rs. Millions
Break up of Expenditure
Q4 FY14
Q4 FY13
100.51
90.27
136.43
121.02
Service Charges
47.51
44.96
24.64
25.70
Other Expenditure
87.91
87.32
Latest Updates
International Travel House Ltd has recommended a dividend of Rs. 4.25 per equity share of Rs. 10/- each for
the financial year ended March 31, 2014.
COMPANY PROFILE
International Travel House is an associate company of ITC Limited, one of Indias foremost Private Sector
companies rated amongst the worlds leading companies by Forbes magazine. ITC is a leading player in Tobacco
products, Hospitality, Golf Resorts, Packaging & Printing, Paper & Paperboard, Leisure Apparels and Gourmet
Processed Food, and also a leader in Agri-business and IT industries.
International Travel House commenced its operations in 1981, and offers a full bouquet of travel services. The
companys services include air ticketing, car rental, inbound tourism, business travel agency and consultancy,
destination management, overseas and domestic holiday packages, conferences, events and exhibition
management, and wedding management. It serves customers through a network of 10 IATA travel offices, 13 car
rental offices, and 19 travel counters across India as well as a global tie-up that provides access to 88 partners in
74 countries through the GlobalStar Travel Management Companies. The GlobalStar tie-up, of course, extends the
Companys reach to almost all the major travel destinations of the world.
Over the years, it has grown to be one of the largest Complete Travel Management companies in India, with each
of its products and services bearing the distinct ISO 9001 quality benchmarking.
With a team of dedicated professionals, a nationwide network, and state of the art technology, International
Travel House is well equipped to address all possible travel needs of both Business and Leisure Travellers.
FY14A
FY15E
FY16E
79.95
79.95
79.95
79.95
1095.19
1236.51
1409.62
1592.87
1175.14
1316.46
1489.57
1672.82
0.08
0.00
0.00
0.00
3.86
0.00
0.00
0.00
34.55
22.55
23.68
25.10
17.80
18.75
19.88
20.87
56.29
41.30
43.55
45.97
Trade Payables
388.65
292.28
248.44
216.14
87.14
94.42
100.09
105.09
57.61
68.38
78.64
87.29
533.40
455.08
427.16
408.52
1764.83
1812.84
1960.28
2127.31
321.42
326.64
346.24
363.55
0.00
115.00
132.25
148.12
0.00
0.33
0.36
0.39
33.85
41.92
48.63
54.46
355.27
483.89
527.48
566.52
Current Investment
362.79
299.16
329.08
358.69
Trade receivables
891.95
852.44
906.03
979.67
55.35
46.60
51.26
55.36
99.47
113.59
127.22
146.30
0.00
17.16
19.22
20.76
1409.56
1328.95
1432.81
1560.78
1764.83
1812.84
1960.28
2127.31
SOURCES OF FUNDS
Shareholder's Funds
Share Capital
Reserves and Surplus
1. Sub Total - Net worth
Non Current Liabilities
APPLICATION OF FUNDS
Non-Current Assets
a) Fixed Assets
Annual Profit & Loss Statement for the period of 2013 to 2016E
Value (Rs. mn)
FY13A
FY14A
FY15E
FY16E
12m
1643.30
12m
1717.11
12m
1820.14
12m
1938.45
Other Income
33.03
47.39
51.18
54.25
Total Income
1676.33
1764.50
1871.32
1992.70
Expenditure
-1306.38
-1404.70
-1483.41
-1570.14
369.95
359.80
387.91
422.56
-0.35
-0.16
-0.15
-0.16
Gross profit
369.60
359.64
387.76
422.40
Depreciation
-110.47
-98.85
-102.80
-107.94
259.13
260.79
284.95
314.45
Tax
-79.94
-79.72
-85.77
-94.34
Net Profit
179.19
181.07
199.18
220.12
Equity capital
79.95
79.95
79.95
79.95
1095.19
1236.51
1409.62
1592.87
Face value
10.00
10.00
10.00
10.00
EPS
22.41
22.65
24.91
27.53
Description
Net Sales
Operating Profit
Interest
Reserves
Quarterly Profit & Loss Statement for the period of 30th Sep, 2013 to 30th June, 2014E
Value(Rs. mn)
30-Sep-13
31-Dec-13
31-Mar-14
30-Jun-14E
Description
3m
3m
3m
3m
408.95
423.98
447.00
460.41
Other income
9.97
10.85
20.12
20.92
Total Income
418.92
434.83
467.12
481.33
Expenditure
-336.15
-361.23
-372.36
-376.62
Operating profit
82.77
73.60
94.76
104.72
Interest
-0.06
-0.04
-0.03
-0.03
Gross profit
82.71
73.56
94.73
104.69
Depreciation
-24.84
-24.31
-24.64
-25.38
57.87
49.25
70.09
79.31
Tax
-17.47
-14.33
-21.50
-24.11
Net Profit
40.40
34.92
48.59
55.20
Equity capital
79.95
79.95
79.95
79.95
Face value
10.00
10.00
10.00
10.00
EPS
5.05
4.37
6.08
6.90
Net Sales
Ratio Analysis
Particulars
FY13A
FY14A
FY15E
FY16E
22.41
22.65
24.91
27.53
22.51%
20.95%
21.31%
21.80%
15.77%
15.19%
15.66%
16.22%
10.90%
10.55%
10.94%
11.36%
7.99
7.90
7.18
6.50
ROE (%)
15.25%
13.75%
13.37%
13.16%
ROCE (%)
40.88%
34.84%
32.94%
31.71%
3.72
3.85
3.56
3.26
146.98
164.66
186.31
209.23
1.22
1.09
0.96
0.86
EPS (Rs.)
EV/EBITDA (x)
Book Value (Rs.)
P/BV
Charts
At the current market price of Rs. 179.00, the stock P/E ratio is at 7.18 x FY15E and 6.50 x FY16E
respectively.
Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.24.91 and
Rs.27.53 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 6% and 7% over 2013 to 2016E
respectively.
On the basis of EV/EBITDA, the stock trades at 3.56 x for FY15E and 3.26 for FY16E.
Price to Book Value of the stock is expected to be at 0.96 x and 0.86 x respectively for FY15E and FY16E.
We recommend BUY in this particular scrip with a target price of Rs.200.00 for Medium to Long term
investment.
INDUSTRY OVERVIEW
The Indian economy has slowed down and is not expected to show a GDP growth of more than 5% during 201314. At the same time, inflation will probably continue to be a matter of concern.
Meanwhile, the economic problems in the Eurozone are far from over. The shadow of this uncertainty is unlikely
to recede during the coming financial year.
Domestic air fares are likely to be higher by about 5-10% and could result in a further slowdown in air travel.
Outbound traffic from India continues to show a healthy growth with some 15.5 million Indians travelling abroad
during the past year. According to the World Tourism Organisation, Indias annual outbound traffic should touch
50 million persons by 2020 and account for an annual spend of approximately US$ 28 billion by then. Naturally, a
fair share of this would be on account of corporate travel and incentive tours, where the Company is well
represented.
From a long term perspective, on one hand, the Indian economy continues to have a great potential for growth
and on the other, the travel and tourism industry has been recognised as having the fastest growth rate in the
world. The Company is distinctly poised to take advantage of emerging trends as soon as economic indices start
improving. Many Indian states have commenced efforts to improve their tourism infrastructure and this is likely
to have beneficial effects before long.
Disclaimer:
This document prepared by our research analysts does not constitute an offer or solicitation for the purchase or sale
of any financial instrument or as an official confirmation of any transaction. The information contained herein is
from publicly available data or other sources believed to be reliable but do not represent that it is accurate or
complete and it should not be relied on as such. Firstcall India Equity Advisors Pvt. Ltd. or any of its affiliates shall
not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. This document is provide for assistance only and is not intended to be and must
not alone be taken as the basis for an investment decision.