Quant-Funda : Buy between Rs. 1,240 - 1,290 TBO TEK Ltd For Target Rs. 1,540 - Geojit Investments Ltd
Fundamental View
TBO TEK Ltd. (TTL) is a global B2B travel distribution platform connecting travel suppliers—hotels, airlines, car rentals, etc.—with buyers such as travel agencies and independent advisors through a two-sided, technology-led model. Founded in 2006, it operates across 100+ countries, aggregating 750+ airlines and over one million hotels, with an annual Gross Transaction Value (GTV) of ~Rs.308bn (~41% from airlines and ~59% from hotels).
* TTL delivered a strong 9MFY26, with revenue of Rs.1,863cr (up ~44% YoY) driven by resilient core B2B demand and Classic Vacations’ (recent acquisition) contribution. PAT rose to Rs.184cr (8%YoY) despite integration costs. In Q3FY26 GTV grew 35% YoY to Rs.9,709cr, while EBITDA to-GTV improved to 1.18%, supported by scale benefits and a richer premium product mix.
* The Classic Vacations’ acquisition sharpens TTL’s premium positioning, adding ~10,000 US luxury advisors and ~1,500 hotels, with early cross-sell traction supporting efficiency and margin uplift. The business mix continues to improve, with hotels and ancillaries at ~59% of GTV, delivering higher net take rates (~5.5%) versus airlines (1.3%), supporting cash generation.
* As per market consensus, TBO Tek trades at ~35x one-year forward P/E, below its post-listing average of ~49x. The valuation appears reasonable given strong revenue visibility, an improving mix toward higher-margin hotels and luxury travel, benefits from the Classic Vacations’ integration, and rising operating leverage—supporting sustained earnings compounding and margin expansion.
Technical View
* The stock is currently exhibiting range-bound price action, trading within a broad consolidation structure.
* Recent price movement shows a sharp rebound from the lower boundary of the range, suggesting emergence of buying interest at lower levels.
* The RSI has rebounded from lower levels and is moving toward the mid-zone, signaling improving momentum after a weak phase.
* The MACD remains in negative territory but shows signs of convergence, indicating waning bearish momentum and potential stabilization.
* Initiate long positions between Rs.1,240–Rs.1,290, maintain a stop-loss at Rs.1,067, and target Rs.1,540, offering a favourable risk–reward aligned with the prevailing bullish trend.
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