KR Choksey recommends Subscribe to Cox and Kings IPO
The brokerage is positive on the company looking at the growth potential the business holds in the future.
By ET Bureau |
MUMBAI: KR Choksey has recommended a subscribe rating to Cox and Kings IPO. The brokerage is positive on the company looking at the growth potential the business holds in the future.
“India’s tourism industry accounts for 6% of GDP, much below world average. This provides Cox & Kings vast opportunity to the domestic outbound & inbound tourism market.
Increasing global opportunities for companies with acquisition of businesses offering synergies, increasing disposable income, increasing standard of living, rising demand for management studies abroad, favorable environment for migrated people abroad would be the key drivers for growth in travel and tourism industry.
On valuation side, price band looks attractive compared to it peers. On higher band of Rs 330, the issue is priced at Rs 14.7x its FY09 EPS and 4.0x its FY09 book value.
Though the recent IPO’s have not faired well, we are positive for Cox & Kings IPO looking at the growth potential the business holds in the future. Thus, we would recommend our investors to SUBSCRIBE to the company’s IPO,” the report said.
“India’s tourism industry accounts for 6% of GDP, much below world average. This provides Cox & Kings vast opportunity to the domestic outbound & inbound tourism market.
Increasing global opportunities for companies with acquisition of businesses offering synergies, increasing disposable income, increasing standard of living, rising demand for management studies abroad, favorable environment for migrated people abroad would be the key drivers for growth in travel and tourism industry.
On valuation side, price band looks attractive compared to it peers. On higher band of Rs 330, the issue is priced at Rs 14.7x its FY09 EPS and 4.0x its FY09 book value.
Though the recent IPO’s have not faired well, we are positive for Cox & Kings IPO looking at the growth potential the business holds in the future. Thus, we would recommend our investors to SUBSCRIBE to the company’s IPO,” the report said.
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