Thomas Cook India


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Prof. Bakshi has uploaded lecture presentation and video by Quess Corp. (Formerly IKYA Human Capital), a TCIL subsidiary, CEO Mr. Ajit Isaac to his class.

Ikya planning for $200mn IPO.

Thomas has current market cap of ~$811, presuming they will dilute 25% for $200mn, looks valuation gap.

However, this depends on this presumption of % equity dilution.

Your views?

Annual Results are out

Consolidated side is on positive side and Standalone side is on negative side. How it affects the valuation

Lukewarm results - the only crown jewel is ikya which has a RoCE of 70 % + and is growing well.

I am worried about the slow turnaround in sterling and the less than exciting growth in the core business.

Invested, but I would’nt think of adding more at this price - it’s a little over valued given the performance IMHO

Some more updates

In accordance with its strategy to use Thomas Cook as investment vehicle, today the company announced “Thomas Cook India acquires Luxe Asia via its subsidiary Thomas Cook Lanka (Pvt) Ltd”…One more acquisition after Prem Watsa took stake in Thomas Cook…

Lets ponder on the rationale and benefits of this acquisition…


Yet another acquisition by Prem Watsa’s investment vehicle i.e. Thomas Cook India. It bought Swiss based Kuoni’s India and HK operations for INR 535 Cr.

This is Thomas Cook’s second acquisition in a week.

This acquisition will add to its market share in touring and forex business as well as increase penetration.


Competition Appellate Tribunal has set aside the CCI penalty of Rs. 1 Crore to Thomas Cook Ltd. with regards to acquisition of Sterling Holidays Ltd.

hello guys , does anyone had worked /information on thomas cook SOTP VALUE ?? … it seems major reveune is from quess corporation followed by travelling business … sterling still to show some remarkable performance …

as per mgmt , kuoni seems a reasonable buy

disclosure - have a position

I tried getting a document that elaborates on the deal, from the MCA website. Although I paid for it, I couldn’t access it. Maybe other VPers can help…

Trouble brewing?

According to a media report, Quess’s (a subsidiary of Thomas Cook), IPO hit road block. There is a difference of opinion between Prem Watsa and the original promoters of Quess. The company had acquired 74 percent stake in Quess (earlier known as IKYA) in February 2013 for Rs 256 crore. As on September 8, 2015: Watsa’s Fairfax holds 67.86 percent stake in Quess. The remaining 32.1 percent Stake in Quess is held by Ajit Isaac and employees. Report says that Thomas Cook is against allowing Isaac to increase his ownership to higher than 25 percent. Quess contributes around 80 percent to consolidated topline and 50-55 percent to EBIT. CNBC TV18 has not verified the story independently and can not vouch for it’s authenticity

Read more at:

Much more in depth. Money quote:

According to Vivek Mallya, a practicing chartered accountant in Bengaluru, Thomas Cook has derived its significant valuation from Quess’ performance rather than its own operating margins. “In fact, Thomas Cook could not report adequate profits to cover its MD’s remuneration, and had to seek the Corporate Affairs Ministry’s approval for the excess remuneration,” he said.

So called value investors were actually speculating it seems (knowingly or unknowingly!)

Disc: no positions, not interested either (following because of Prof Bakshi’s interest)

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Agree that thomas cook generates majortiy profit from Quess Corporation.

But what I understand is Thomas Cook itself generate free cash flow and enjoys Forex market with 52% market share and also performing well on corporate holidays.

Prem Wasta is using this cash flow from thomas cook to buy business which are generating free cash flow below 10times valuation.

So lets see how the story pan out and is he able to buy some another good companies like Quess that can add significant value to Thomas Cook.

Disc : Invested and has positive bias

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Interesting results of yesterday!! New acquisitions are expected to significantly contribute in the coming qtrs. Brainhunter, MFX, and other new acquisitions done over the past couple of quarters - it is becoming more of growth story now than ever before.



Any one has done any detailed research on this stock . I think IKYA investment can be a game changer for this company.

IKYA is the only listed company( part of Thomas Cook) which does logistics services for e-com companies like Amazon. You can just imagine the impact of this in the coming years. But I dont know when they are going to improve the ROE and margins. See the capex incurred in the latest year. It is huge.


Ikya biz model is similar to Addeco (Swiss co). They reported YoY growth over several qtrs even in a mature Labor market viz. Europe. There is a an interesting note on the stock by Prof Sanjay Bakshi (of Fundoo Prof fame) Pls do have a look. He also mentions Issac (CEO) as an Fanatic to get the EBIDTA margins up to 8% from current 5.7% levels.

Disc: Invested at lower levels and continuing now

Do not count much on Prof Bakshi for the return from stocks. He excells in business anlysis, but business analysis does not give you return in this age of fast communication because you never know the intent of blogs from experts.

In my opinion, growth of logistics services because of e-com is overhyped. If the e-com cos have to survive and grow, they will have to cut costs on all fronts, will have to set up many more warehouses, (perhaps shared) and move bulk of cargo by rail. Last mile connectivity will have to be provided by logistics companies. How many of them will be local players and how many will be listed players is to be seen. We can expect steady growth in business of logistics companies but nothing dramatic, I think.