Smallcap Tourism Stock can rally up to Rs 1,800: Jefferies List 3 reasons for Sidebuild

International Brokerage Jefferies has termed the latest editing of TBO Tech as “classic opportunity” to expand its global reach, after which the company announced the purchase of a US -based luxury travel wholesale classic vacation in almost 125 million. Brokerage has targeted its price target at Rs 1,625 to Rs 1,800 and rewarded its bye rating. The stock expired at Rs 1,578, which was 2.33% from the last closest to the NSE.

According to Jefferies, editing offers different benefits for TBO. First, that company has a US. Large outbound luxury gives strong access to the travel market, where the current presence of TBO is about 5% of the total transaction value. The classic with it brings a curated network of US travel consortia and about 1,500 luxury hotels, which will gradually integrate the company’s luxury platform, TBO platinum.

Second, the harmonious growth between the two businesses is expected to unlike the Lock. While the classic revenue has been deft in recent years, Jefferies believe that TBO’s supply technology and booking engine will improve efficiency and expand the Ings fur. This editing is also expected to earn earnings from the nearest period, with the classic long booking windows to support the TBO against 140-255 days against Windows, which supports strong working capital.

Third, 11 times more than EV/EBITDA is more multiple compared to the TBO’s past deal, the Jefferies justifies the valuation with the classic’s premium positioning and profitability. The classic runs with a total tech rate of 22-23%, which is very high than 6%of TBOs, though consultants are paid almost half as a commission. Nevertheless, the total transaction value is stronger than the EBITDA and profit contributions to the TBO.

Jefferies has increased its earnings for TBOs for FY 26-28 following the acquisition, and during this period, revenue and EBITDA expects an annual growth of 33-36%. It added that when the TBO plans to pause more M&A activity to focus on integration, the comprehensive roll-up strategy is intact.

Despite the 16% increase in the last one month, TBO tech shares are down 10% in the year-to-year.

(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)