Hi based on this data fair value of TC comes out to be Rs. 81 after demerger. Am I missing anything ??
I am tracking this counter only recently.
Does Thomas cook still own 49% of Quess corp, post restructuring, and the profit of -8.45 Cr last quarter is only for TCI standalone business?
Some insight on its current business setup will help
I checked the last quarter profit from this link below
https://www.valueresearchonline.com/stocks/financialQuarterly.asp?code=4094
Does Thomas Cook UK’s troubles have any effect on the company?
Shares down 30-40% after massive loss reported by the UK company, and after Citigroup said it’s shares may be worthless.
Disc: tracking
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I don’t really think so. I am invested on account of Demerger of Quess Corp from Thomas Cook and Thomas Cook being investment vehicle (travel related business) of Prem Vatsa in India
Hi All,
Is the total eps of thomas cook is 2 and pe - 105 if yes is it justifued looking amazon and all other player are there into market
Is anybody having this PDF? Can you please share it here?
thanks.
use this link
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When would Quess Corp get separated from Thomas Cook ??
Any idea why share is falling all of sudden?
TCIL’s subsidiary Quess corp did a project with a co called Trimax which has gone bankrupt & its lenders are knocking at the doors of NCLT because it has become an NPA account. Trimax was doing a smart city project for Ahmedabad. But due to delay in recievables they faced working capital challenges. As is the fate of all projects where Government is a customer. Refer my comments in the Narayana Hrudalaya thread. Quess corp has only recovered 550-600 million out of 2000 million from the govt & hence the sharp correction. But the story for TCIL remains intact. And looking at the future potential of travel & forex earnings from aspiring millenial workforce of India, TCIL can be an attractive buy for long term.
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Bargain Hunting !
The recent share price fall of Thomas cook india seems a misread by market linking this entity to UK thomas cook which is under stress. As per management clarification they only pay royalty to thomas cook UK to use the brand name and they have no other links with UK entity.
More on Problmes with UK entity https://www.bbc.com/news/topics/c416n3k3156t/thomas-cook-group
At CMP Thomas cook looks interesting.
For every 11 shares of Thomas cook , we will get ~2 shares of Quess Corp.
Cost : 11 x 130 = 1430 ( Thomas cook last closing price )
Value : quess closing price, 450 x 2 = 900
so if you remove quess from thomas cook , valuation per unit stock = (1430 -900)/ 11= 48/-
so Market cap of thomas cook without quess = 1780 crores , It has cash of 1000 crores and some more investments.
Unless there is some hidden mismanagement ( which i assume is not the case with Fairfax on board) which i haven’t been able to find out from publicly available info , seems a bargain buy.
DISCL : Invested at CMP.
Not a buy reco , just inviting views if something is missed above.
Caveat : 1) I am assuming the demerger/(share transfer from thomas cook to investor) has not happened yet seeing shp ( need to confirm) and who ever is buying it now is still eligible for quess share when demerger happens.
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The brand license agreement (India, Bhutan,srilanka) with UK Thomas cook is upto 2025(13 yrs as per prof bakshis lecture pdf, somewhere else 2025 mentioned). Not sure what happens after that in case Thomas cook UK changes hands again. Although, Prof Bakshi says the outbound travellers keep increasing despite rupee depriciation, market might still be perceiving it as risk (like in case of gold and Titan). Also, there was a scare recently due to some part truth/part rumour regarding currency fraud in Kerala branch. Good opportunity if none of the above turned out to be real scare.
[Edit] is there any possibility that the record date for Quess corp allotment eligibility would be older date than the present day(a novice question), since the demerge process started long long time back? Somebody mentioned this is a way to legally avoid tax. The demerge process not getting approval (especially with so kuch delay so far) is real risk as the holding company discount would be applied to Quess ownership(again a novice opinion).
Disc: tracking position
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Robust Balance Sheet:
The Thomas Cook India Group is financially strong with cash and bank deposits balances of Rs.
13,890 Mn. as of June 30, 2019. On a standalone basis Thomas Cook India is debt free upon prepayment of Rs. 670 Mn debenture obligations ahead of schedule. This has been made possible
using stable and strong cash flows that the Thomas Cook India Group is generating year over
year. The Group generates an average annual free cash flow of around Rs. 2500 Mn.
Src: Results presentation of last quarter.
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Just wanted to confirm - I think the swap ratio mentioned was 10 shares of Quess for 53 shares of Thomas Cook.
Still its pretty much same , there is marginal difference only.
10x450=4500
53x130=6890
6890-4500=2390
2390/53= 45/-
My earlier calculation was hinting at 48/- per TCIL , now it seems even better if what you say is true.
Thomas Cook shareholders will receive 1,889 equity shares of Quess for every 10,000 equity shares of Thomas Cook.
https://www.business-standard.com/article/companies/thomas-cook-okays-corp-revamp-shareholders-to-get-shares-in-hr-firm-quess-118042301171_1.html