Investment Idea - Cox and Kings

If some one will ask me about investment in the indian stock market, I'll go with only one theme. Invest in the companies which are leaders in their respective sectors or company which is showing excellent growth potential.

Cox and Kings come under both the above categories. Its leader in tours and travels and company is posting excellent results if you check last 5 years track record.

Indian tourism industry accounts for 6% of GDP. So I believe there is immense opportunity for the company to expand. Think from common mans point of view. You can see now lots of people are spending money on trip outside India or within India as well. Industry is growing at really good pace and leader like Cox and kings will definitely get benefit out of it.

Financial:

- Company has posted excellent top line and bottom line numbers for last 5 years. One of the most consistent growth I've seen ever.
- Company was managed to achieve almost 23% CAGR growth for last 5 years.
- Company is looking to grow inorganically as well by several acquisitions.

News and Peers comparison:
Today stock price was quoting at around 430 rs. It's still looks cheap when we compare its peer Thomas Cook.
Also there's going to be news flow in this counter. Company has tie-up with Indian Railway for special tourist train which is going be launch in January. This positive announcement will definitely help the counter to break its highs and move towards 500 Rs.

Mutual Fund:
Most of the mutual fund which are doing good have opted for Cox and Kings. They do so after doing lot of research about the company growth which can reflect in their own growth.

I recommend BUY on Cox and kings at current levels with medium term price target of 510 Rs and 1 year target of 660 Rs.

Happy Investing!!
Disclaimer: I do hold Cox and kings since it's IPO.