Jefferies retains Buy on TBO Tek, sets ₹1,905 target
TBO Tek management reiterated a hotel GTV CAGR of more than 20% in constant currency over the next five years. Classic’s front-end integration, due by CY-end, is expected to enable cross-selling, while maturing KAM cohorts and operating leverage support EBITDA expansion.
What happened
TBO Tek management reaffirmed over 20% hotel GTV CAGR over five years. Classic’s front-end integration by year-end is expected to unlock cross-selling, while
Key facts
- Target price: ₹1,905
- CMP: ₹1,703.10
- Hotel GTV CAGR: over 20% (constant currency) for the next five years
- Wholesale contributes about 50% of overall GTV
What changed
TBO Tek management reaffirmed over 20% hotel GTV CAGR over five years. Classic’s front-end integration by year-end is expected to unlock cross-selling, while mature KAM cohorts and operating leverage support EBITDA growth.
Why this matters
Jefferies’ ₹1,905 target implies roughly 12% upside, supported by management’s >20% constant-currency hotel GTV CAGR outlook, wholesale’s ~50% GTV contribution, and anticipated EBITDA-margin expansion.
What to watch
- Classic front-end launch completed on schedule by CY-end.
- Constant-currency hotel GTV growth sustains above 20% for multiple quarters.
- Improving EBITDA margin and lower incremental operating-cost intensity.
- Evidence of higher booking frequency, cross-sell or wallet share among Classic and KAM cohorts.
- Material deceleration in wholesale GTV, agent churn, lower take rates or elevated supplier/customer incentives.