TBO Tek Shares Jump 8% To Touch A Fresh All-Time High At INR 2,000

TBO Tek Wins INR 302 Cr Service Tax Case, Shares Gain

SUMMARY

At INR 1,924.10, the stock’s last closing price was 109% above its issue price and 39% higher than its listing price

TBO Tek posted a net profit of INR 60.91 Cr on an operating revenue of INR 418.5 Cr in Q1 FY25

On the back of its strong Q1 results, Goldman Sachs last month reiterated its “buy” call on the stock with a target price of INR 1,950 per share

Shares of B2B travel portal Travel Boutique Online or TBO Tek jumped over 8% during the intraday trading on Wednesday (September 4) to hit an all-time high at INR 2,000 apiece on the BSE.

However, the stock shed some of the gains and closed the day 4.05% higher at INR 1,924.10 apiece.

The stock has given bumper returns to investors since its Dalal Street debut in May. It has skyrocketed 109% from its issue price of INR 920 per share and surged 39% from its listing price of INR 1,380 apiece on the BSE.

At the end of Wednesday’s trading session, TBO Tek’s market capitalisation stood at INR 20,893.38 Cr (around $2.48 Bn).

Founded in 2006, TBO Tek provides travel solutions to travel agents and tour operators. It offers white-label solutions, hotel and flight booking APIs, and dynamic packages, among others.

The company posted a 29% jump in its consolidated net profit at INR 60.91 Cr in the June quarter (Q1) of the financial year 2024-2025 (FY25) from INR 47.3 Cr in the year-ago quarter. Revenue from operations surged 21% year-on-year to INR 418.5 Cr during the quarter under review.

On the back of strong Q1 results, Goldman Sachs last month reiterated its “buy” call on the stock with a target price of INR 1,950 apiece, implying an upside potential of almost 5.5% from its last close on Tuesday.

Meanwhile, Phillip Capital also maintained its “buy” rating on the stock with a price target of INR 2,040 per share. This would imply an upside of over 10% from the previous close.

In a research note, analysts at Phillip Capital said they expect TBO’s strategic shift towards hotels and international markets to support blended take rates and margins in the medium term, with network effects likely driving operating leverage.

This comes at a time when nearly a dozen new-age tech startups, including Ola Electric, Unicommerce, FirstCry, ixigo, and Menhood, among others, have made their market debuts this year.

Other startups such as MobikWik, Swiggy, Ecom Express and Smartworks are also looking to launch their initial public offerings (IPOs) soon.

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