TBOTEK Research Report

Company Overview

TBOTEK is a technology-driven B2B travel platform that connects over 750 airlines, 1 million hotels, and travel buyers worldwide. Its platform offers a one-stop solution for travel buyers, having evolved from a simple air ticketing platform for agents into a comprehensive global travel booking platform.

Business Performance

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TBOTEK has achieved an annual Gross Transaction Value (GTV) of INR308 billion, with 41% contribution from airlines and 59% from hotels and ancillaries. The company has over 50,000 transacting partners and has built strong moats in the global B2B travel distribution ecosystem through deep supply aggregation across airlines, hotels, and ancillaries.

Outlook

We expect TBOTEK to deliver a compound annual growth rate (CAGR) of 35% in revenue, 37% in earnings before interest and taxes (EBIT), and 32% in profit after tax (PAT) over FY25-28. The growth is driven by increased contribution from high take-rate hotels and ancillary segments in the GTV mix, which is expected to rise from 59% currently to 70%.

Valuation

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We value the stock at 28x FY28E earnings per share (EPS) of INR48.7, arriving at a target price (TP) of INR1,360.

Recommendation

We initiate coverage on TBOTEK with a BUY rating.