TBO Tek Shares Slip 6% During Morning Trade

TBO Tek Shares Surge Over 11% After Strong Q2 Show

SUMMARY

With a drop in its share price, the company's market capitalisation stood at INR 13,870 Cr at 12:38 PM with more than 1.27 Lakh shares traded hands by then

The stock slightly recovered at the time of writing and was trading 5.8% lower at INR 1277.35 apiece on the BSE

Earlier this month, brokerage PhillipCapital reaffirmed its ‘buy’ call on TBO Tek, citing strong business growth in the December quarter

Shares of travel tech company TBO Tek nosedived over 6% to INR 1,273 during the intraday trading session on the BSE today (February 28).

With a drop in its share price, the company’s market capitalisation stood at INR 13,870 Cr at 12:38 PM with more than 1.27 Lakh shares traded hands by then.

The stock slightly recovered at the time of writing and was trading 5.8% lower at INR 1277.35 apiece on the BSE.

Earlier this month, brokerage PhillipCapital reaffirmed its ‘buy’ call on TBO Tek, citing strong business growth in the December quarter. The brokerage gave the stock a target price of INR 2,090.

At the current market price, the stock lost over 9% in the last one year and around 18% in the past month.

TBO Tek reported a nearly 2% decline in its consolidated net profit to INR 49.97 Cr in Q3 FY25 from INR 50.79 Cr in the year-ago quarter.

Sequentially, net profit declined almost 17% from INR 60.08 Cr.

However, the company’s operating revenue zoomed over 29% to INR 422.18 Cr during the quarter under review from INR 326.85 Cr in Q3 FY24 on the back of strong growth in the hotels and ancillaries segment, both in India and the international markets.

Founded in 2006 by Ankush Nijhawan and Gaurav Bhatnagar, TBO Tek offers a wide range of travel services to travel agents and tour operators, such as hotel reservations, flight bookings, holiday packages, insurance cover, car rentals, among others.

The company has been expanding its overseas operations for quite some time. In December last year, it set up a new wholly-owned subsidiary in Indonesia as part of its plans to strengthen its footprint in the region.

Prior to that, TBO Tek incorporated a step-down subsidiary, TBO Tek Australia with its headquarters in Sydney. The subsidiary was set up to offer business support services, including marketing and promotional activities, to TBO Tek in Australia.

The company went public in May last year with its shares listing at INR 1,380 on the BSE, registering a premium of 55% to its issue price.