The Indian tourism sector is witnessing robust growth, bolstered by government initiatives and a rising middle class. According to reports, the industry is poised to grow rapidly in the coming years. The travel market is likely to touch USD 125 billion by 2027, with international tourist volume projected to increase to 30.5 million by 2028.
In the 2024 Union Budget, the Finance Minister has allocated Rs. 2,479 crores for the tourism sector, marking a significant increase from the previous year’s allocation.
This allocation is aimed at boosting India’s tourism industry and positioning the country as a premier global tourist destination.
Piotroski score, named after Stanford accounting professor Joseph Piotroski, is a number between ‘0’ and ‘9’ used to assess the strength of a company’s financial position. Financial investors use the score to find the best-value stocks.
Listed below are such tourism stocks with high Piotroski score:
With a market capitalization of Rs. 11,926 crores, the shares of Thomas Cook (India) started Friday’s trading session on a higher note at Rs. 257, gaining around 1 percnet compared to its previous close of Rs. 251.77. and closed the day at Rs. 253 apiece. The company has a Piotroski score of ‘8’.
Looking at the company’s financial performance, the revenue decreased by 12 percent from Rs. 1,893 crores during the December quarter to Rs. 1,664 crores in the March quarter. On the other hand, the net profits declined by 36 percent from Rs. 91 crores to Rs. 58 crores during the same period.
In terms of key financial metrics, the company reported a return on equity of 12.59 percent and a return on capital employed of 14.63 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 3.71 percent during the same timeframe.
Thomas Cook (India) Ltd. is a prominent travel agency based in Mumbai, India, offering a wide range of travel-related services. These include foreign exchange, domestic and international holiday packages, visa and passport assistance, travel insurance, and corporate travel solutions.
With a market capitalization of Rs. 505 crores, the shares of International Travel House started Friday’s trading session on a higher note at Rs. 635 compared to its previous close of Rs. 633.75.
During the trading session, the shares hit a high of Rs. 638.45, gaining around 1 percent and closed the day at Rs. 632 apiece. The company has a Piotroski score of ‘8’.
Coming onto the company’s financial statements, the revenue decreased by around 5 percent from Rs. 58.66 crores during the December quarter to Rs. 55.75 crores in the March quarter. Contrastingly, the net profits jumped by 10 percent from Rs. 6.13 crores to Rs. 6.71 crores during the same timeframe.
In terms of key financial metrics, the company reported a return on equity of 15.79 percent and a return on capital employed of 20.91 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 10.35 percent during the same timeframe.
Incorporated in 1981, International Travel House Limited (ITH) started operations as India’s first publicly listed travel company. At present, the company is engaged in the business of providing travel-related services to travellers in India and abroad.
With a market capitalization of Rs. 26,615 crores, the shares of EIH started Friday’s trading session on a flatter note at Rs. 417 compared to its previous close of Rs. 417.75.
During the trading session, the shares hit a high of Rs. 426, gaining around 2 percent and closed the day at Rs. 422 apiece. The company has a Piotroski score of ‘9’.
Looking at the company’s financial performance, revenue held steady at Rs. 714 crores throughout the third and fourth quarters of FY24. On the other hand, the net profits surged by 7 percent from Rs. 230 crores to Rs. 248 crores during the same period.
In terms of key financial metrics, the company reported a return on equity of 16.22 percent and a return on capital employed of 20.20 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 25.64 percent during the same timeframe.
EIH is primarily engaged in owning and managing premium luxury hotels and cruisers under the luxury Oberoi, Trident and Maidens brands. The Company is also engaged in flight catering, airport restaurants, project management and corporate air charters.
Written By Vaibhav Patil
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