International Travel House (BSE Code - 500213)

Hi Donald

Thanks for the workup and comparision table.

My guess is that the increased revenues and profits are due to higher occupancy rates in hotels which leads to higher car rental usage. Plus the MICE segment – meeting, conference etc seems to be the growth driver going ahead. And with the tie up with cosmos et all should provide the company with a firm footing in the outbound leisure travel from India, where it seems to be lagging far behind cox and kings and which is a big business nowadays from the foreign tours taken up by people atleast in my home state Gujarat.

What attracts me to this company is that they can grow with very little additional capex and the concerns about ITC squeezing margins from it seem to be misplaced. Since the stock has had a sharp run up, there is bound to be consolidation but if the company continues to give good results even in dec quarter and then onwards, this one is bound to catch market fancy. It looks similar to hertz rent a car mentioned in peter lynch book.

My estimates for FY 11 conservatively would be around EPS of 21-22 per share.