Shares of TBO Tek Limited rose 3.5% on March 24 after Motilal Oswal initiated coverage on the stock with a buy rating and a target price of ₹1,360, implying an upside of approximately 34% from current levels.
The stock opened at ₹1,050.00 against its previous close of ₹1,018.00, touching a session high of ₹1,066.00 and a low of ₹1,014.00. The 52-week range stands between ₹996.00 and ₹1,764.80. Live volumes stand at 82,042 shares during the session.
TBO Tek is a global B2B travel platform connecting over 750 airlines, one million hotels, and 50,000 travel agents, with a gross transaction value of ₹308 billion. The brokerage highlighted the company’s supply aggregation capabilities and global infrastructure spanning 88 currencies, 16 languages, and over 4.25 lakh routes as key competitive advantages in a fragmented travel agent market.
The note cited a favorable mix shift toward higher-margin hotels and ancillary services, which currently account for approximately 59% of GTV and are projected to rise to 70%, as a key driver of margin expansion. EBITDA margins are expected to expand to approximately 18% by FY28.
Motilal Oswal projected revenue, EBIT, and PAT compounded annual growth rates of approximately 35%, 37%, and 32% respectively over FY25 to FY28. The brokerage also noted the company’s asset-light, negative working capital model as supportive of a free cash flow CAGR exceeding 40% over the same period. The stock is valued at 28 times FY28 estimated earnings.
TBO Tek operates across multiple geographies, primarily serving travel agents, tour operators, and corporate clients through a unified platform for flight, hotel, and ancillary bookings.
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