Cox n Kings vs Thomas Cook

Hello all,
New member here. Have been a visitor for a few months now..
My investment rationale is
A company which can grow ATLEAST 10 times in 10 years. So I chose Cox to be one of the companies which can multiply 10 times.
I analyzed the growth, sales and profit of Cox and added to my portfolio.
I did a peer analysis and Thomas Cook has a PE of 74 and Cox and Kings just 17.

I fail to understand, why this mispricing?.. What Have I missed?
I am investing from 2013 and still have a lot to learn.
Please provide your insights

 

What kind of market share does these two companies have? Also companies like yatra, makemytrip,ibibo and others are offering holiday packages on their portals. Are these companies eating into market share of Thomas and Cox ?

 

Thomas cook:
1.https://wap.business-standard.com/article/management/looking-for-a-smooth-run-115061400747_1.html
2.https://m.moneycontrol.com/news/bus...quess-corp-to-obtain-49-staketsq_1396233.html
3.https://m.moneycontrol.com/news/business/bookings-higher-by-20-focusuk-us-thomas-cook_1509961.html

Those may be useful to understand their business, growth plans and justification of higher valuation due to scope of higher growth..!

 

@stockjeet18

I looked at the Transfield services acquistion earlier but it made no sense to me. Why would a travelling company acquire an HR management firm. Now I came to know about Quess corp which is a subsidary of Thomas Cook.
According to your other article in business standard it stated about Thomas cook but I guess same would apply for Cox and Kings too since that is also not an online player. And even Cox has been showing consistent growth profit over the years. So i guess the only justification of premium might be because Quess is a subsidary of Thomas. Share your thoughts.

 

Thanks @stockguru and @stockjeet18 for your valuable inputs.

The market cap is not too different. Thomas Cook is slightly bigger.
Also the differentiator is Visa management and I am not sure if makemytrip, ibibo etc do Visa management as well.
However there are plenty of other unlisted Visa managements, Forex players who might be competing with Cox and Thomas cook.

Also Cox is also a fast growing company both in terms of Revenue and profit.
Anyway I will go through the links provided and try to understand more.

 

@Sanjay Kumar Thomas cook also holds 55% of sterling resorts as well as Quess corp. You need to account both of these too while making valuation of the company

 

Alright , This is just my suggestion !!! My idea about both these companies !!!!

Thomas Cook : The company gets 70% of its revenue from its HR recruiment business(If i am not wrong) and remaining from travelling business . If you want to see your stock price to improve , the company should show good revenue as well as profit . IF you consider travel business there is a good scope . But HR business is a complete different industry as well as its contributing major revenue for this business right now which was a travel business . So i don't prefer to invest in Thomas cook since the stock price cant go much higher even though if its travel business performs well .

Cox and Kings : This company has a equity of 1200 crores and debt of around 600 crores . But when you see their cash sitting in balance sheet it makes me worry . Why the cash is sitting simply ? Atleast they can less their debt without keeping cash sitting in their balance sheet !!!! If they can reduce their debt it would be very promising for investors . But you have seen almost 10% of their debt is always sitting in cash for past 5 years . This is the main reason why you cant find major investors investing in this Cox and Kings !!!

This is just my idea !!!! You can take or leave it !!!!