Cox & Kings Ltd. share price target

Cox & Kings (C&K;) Q2FY17 revenue declined 13% YoY to Rs 6 bn and EBITDA declined to Rs 1.9 bn (Rs 3.2 bn in Q2FY16), largely due totranslation losson forex (Rs 1.1 bn). Adjusted for the forex impact, EBITDA would have been lower by 11%. Reported PAT for Q2 stood at Rs 273 mn (Rs 1.2 bn in Q2FY16). P..

Cox and Kings' (C&K;) results are not directly comparable with our estimates due to adoption of new accounting standard Ind-AS. During the quarter, the company reported gross sales (including cost of tours) of | 2,557.8 crore. Excluding cost of tours, net sales declined 13.7% YoY to | 590.0 crore (below I-direct estimate of | 744.2 crore) mainly due to 14.0% YoY reduction in GBP vs. INR The decline in revenue was mainly led by a decline in education...

results. IndAS impacted the result presentation which is why numbers are not comparable with previous quarter. Depreciation of the Pound Sterling impacted the profitability to the tune of `38crs For a clearer picture on the results the company haas shared the IGAAP nos. ass well. Net sales according to IGAAP grew by 11% to `698crs while EBIDTA (excluding forex impact) grew by 9% to `356crs The company brought down net debt from `2256crs to `1908crs this quarter. uarter. The company remains committed to its target of...

Cox & Kings’ results are not directly comparable with our estimates due to adoption of new accounting standard IND-AS. During the quarter, the company reported gross sales (including cost of tours) of | 2,062.5 crore. Excluding cost of tours, net sales increased 2.5% YoY to | 699.2 crore (below I-direct estimate of | 749.7 crore) • Growth remained lower mainly due to muted growth in international operations. On the other hand, India-leisure growth remained healthy, growing 14.6% YoY to | 220 crore • The EBITDA margin declined 320 bps YoY to 44.8% (below I-direct estimate of 48.4%) led by an increase in other expenses (up 26.2% YoY due to forex loss of | 38.0 crore).

Valuation: They expect the company’s domestic leisure segment to remain healthy due to an improving macroeconomic outlook. However, high exposure to the European market (through Holiday Break), we expect overall revenue growth to remain muted. Further, elevated debt levels and higher cost will keep margins under check. Accordingly, maintain HOLD rating on the stock with a revised target price of | 200/share (i.e. valuing at 8x FY18E EPS). Any major debt reduction remains a key trigger from a longer term perspective.

The EBITDA from continuing operations for FY 16 stood at `820 CR, which translates to a 1% YoY growth from FY 15 (`812 CR) The EBITDA Margins from continuing operations for FY 16 stood at 34.8%, which...

ICICI Securities Ltd | Retail Equity Research Cox and Kings' (C&K;) Q4FY16 results were below our estimates. Revenues declined 3.8%YoY to | 471.0 crore (below I-direct...

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12 15%, 35% contribution to EBIDTA, Operating Margins in the range of 4848 50%), Leisure International ( 30%, 6-10%, 21%, 23-24%), 24%), Education Travel ( 26% 6-10%, 32%, 41%), and Meininger (16%, 6%, 17%, 38%). The company enjoys leadership position with ~33% 33% market share in India's organised travel market. Apart from that the company is the market leader in the education travel market with...

A Global travel conglomerate with tailor made diversified products is well poised to grab the opportunity: C&K is well placed to grab the opportunities of growing inbound and outbound tourism in India. Its franchisee model has evolved as the mainstay of its Leisure - India business. C&K's expansion in Tier II and III cities could able to sustain its growth trajectory in this business segment.