TBO Tek soars as brokerage upgrades ratings

TBO Tek surged 14.97% to Rs 1,590.65, following a target price upgrade by global brokerage, which raised its estimate from Rs 1,625 to Rs 1,800 while maintaining a 'buy' rating.

The brokerage cited TBO Teks recent acquisition of US-based Classic Vacations for $125 million as a key growth driver. Classic Vacations is a premier B2B2C luxury travel company with a strong network of high-value Travel Advisors and deep ties with major American consortia. The company delivered a revenue of $111 million and an operating EBITDA of $11.2 million in the fiscal year ended 31 December 2024.

The broker noted that the acquisition aligns with TBO Teks roll-up strategy in incubated markets and could boost the company's earnings per share by 2-6% between FY25 and FY28. A domestic broker also highlighted that the move strengthens TBO Teks presence in North America, the worlds largest outbound travel market, and supports its strategic push into global luxury travel.

TBO Tek plans to integrate its technology platform and worldwide inventory with Classic Vacations network of luxury travel advisors and suppliers, while Classic Vacations will continue to operate as an independent brand. The combined operations are expected to create significant opportunities for cross-border synergies and margin expansion, reinforcing TBO Teks ambition to become a leading global travel distribution platform.

TBO Tek is a global travel distribution platform that aims to simplify the buying and selling travel needs of travel partners across the world.

The company's consolidated net profit increased 3.4% to Rs 62.97 crore on 22.2% jump in net sales to Rs 511.28 crore in Q1 FY26 over Q1 FY25.

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