TBO Tek Target Price Set at Rs 1,400

JM Financial Institutional Securities has maintained its Buy rating for TBO Tek, establishing a target price of Rs 1,400. This indicates a prospective increase of 31.5% from the existing market price of Rs 1,065 per share.

Understanding Buy Ratings

A Buy rating signifies that an analyst or research firm perceives a specific stock as a promising investment, reflecting confidence in its potential for growth in the near to mid-term and the likelihood of price increases.

TBO Tek’s Growth Potential

This rating stems from both TBO Tek’s present and expected growth. JM Financial forecasts a year-on-year revenue growth of 25.8%, aiming for Rs 464.5 crore in Q4 FY25, compared to Rs 369.1 crore in the same quarter last year (Q4 FY24).

Revenue Forecast Breakdown

Revenue generated from hotel and package bookings is anticipated to account for 78.7% of TBO’s overall income, climbing 34.6% year-on-year to Rs 365.9 crore in Q4 FY25 from Rs 271.8 crore in Q3 FY24. Additionally, revenue from air ticketing and other related services is expected to contribute Rs 86.9 crore and Rs 11.6 crore, respectively, to the firm’s total revenue, as noted in the report.

Profit Margins and Earnings Outlook

TBO’s gross profit margin is forecasted to improve to 70.3% in Q4 FY25, rising from 68% in Q4 FY24. Furthermore, its profit after tax is projected to exhibit a modest year-on-year increase of 1.28%, reaching Rs 47.2 crore in Q4 FY25, compared to Rs 46.6 crore in the corresponding quarter last year.

Sequential Performance Predictions

On a sequential basis, the company is expected to conclude the previous fiscal year (FY25) with a revenue of Rs 1,755.8 crore and a profit of Rs 214.5 crore.

On April 8, TBO Tek closed at Rs 1,065.5, with a market capitalization of Rs 11,570 crore (approximately $1.36 billion). Notably, the stock had reached its 52-week low just a day prior, on April 7, 2025.