Long term players can invest in Cox and Kings IPO:RR Information

MUMBAI: RR Information and Investment Research in its IPO note has advised long term players to invest in the initial public offering of Cox and Kings.

“Cox and King’s superior growth rates, high operating margin in this business and the likely scarcity premium for the business do offer room for premium valuations. Over the last three years, C&K has grown its revenues and profits at a compounded annual growth rate of about 66 per cent and 80 per cent, respectively. In the same period, it managed to expand its operating profit margin by 10 percentage points to 42 per cent.

The demand for tourism in India is expected to increase in the coming times. As world economy rebounds buisness tour, holiday travel is going to amplify significantly. As an emerging economy India, toursim is just 6% of the GDP as compare to 9% for the world. Thus the domestic and inbound market offers a vast scope for all the operators to expand revenues. The long term investors can invest in the IPO,” the brokerage recommendation said.