International brokerage firm Goldman Sachs has initiated coverage on TBO Tech, a prominent online travel distribution platform.
They have given a ‘buy’ rating with a target price of Rs 1,970 per share, reflecting a 24% potential increase from the current market price.
This bullish outlook is based on expectations of robust financial performance and growth prospects.
Goldman Sachs forecasts that TBO Tech’s free cash flow to net profit ratio will remain strong, staying above 100% in the foreseeable future.
The company has shown impressive revenue growth, achieving a 26% compound annual growth rate (CAGR) from FY19 to FY24.
Looking ahead, Goldman Sachs anticipates a 22% CAGR for FY24 to FY27, positioning TBO Tech’s growth among the top performers in their global travel sector coverage.
TBO Tech: A Leading Player in Global Travel Distribution
TBO Tech’s Business Overview
TBO Tech operates as a leading online travel distribution platform catering to the global travel and tourism industry.
As of June 30, 2023, the company serves buyers and suppliers across more than 100 countries.
Offering access to over 7,500 destinations, TBO Tech facilitates approximately 33,000 bookings daily through its platform.
Since its IPO on May 15 at a price of Rs 920 per share, TBO Tech’s stock has surged by nearly 18%.
The company reported a significant increase in profit after tax (PAT), rising by 64% to Rs 46 crore in the quarter ended March 2024 compared to the same quarter last year.
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