Homemarket Newsstocks News

    What's in a name: Thomas Cook (India) falls over 11% after UK namesake collapses

    What's in a name: Thomas Cook (India) falls over 11% after UK namesake collapses

    What's in a name: Thomas Cook (India) falls over 11% after UK namesake collapses
    Profile image

    By Mousumi Paul   IST (Published)

    Mini

    Thomas Cook (India) has become the eye-of-the-storm ever since it got caught up with troubles surrounding Thomas Cook (UK).

    Thomas Cook (India) has become the eye-of-the-storm ever since it got caught up with troubles surrounding Thomas Cook (UK). Many believe that Thomas Cook (India) is the sister company of Thomas Cook (UK). This has resulted in the downfall of the stock, and the Indian travel firm since then has been trying to clarify that both entities are different.
    Thomas Cook (UK) has recently been collapsed in debt after creditors denied additional funds to the company, forcing the British government to hire charter planes to bring thousands of the company’s customers back home. Thomas Cook (UK) has been brought down low by a $2.1 billion debt pile, built up by a series of ill-fated deals.
    So, let’s just be clear that Thomas Cook (India) has no ties with Thomas Cook (UK), and is a completely different entity since August 2012. It was acquired by Fairfax Financial Holdings resulting into 77 percent stake in Thomas Cook (India).
    The company in its BSE regulatory filing said, “Post transfer of its entire stake in Thomas Cook (India) Limited to Fairfax, Thomas Cook (UK) ceased to be the promoter of Thomas Cook (India) Limited from the said date and since then, Thomas Cook (UK) has had no stake in Thomas Cook (India) Limited. The media updates on Thomas Cook (UK) have no correlation.”
    Even amongst its peers, Thomas Cook (India) remained a better performer in terms of earnings, cash flows, borrowings and returns.
    As of June 30, Thomas Cook's (India) cash and bank deposits stood at Rs 1,389 crore. Furthermore, on a standalone basis, the company is debt-free as it paid debentures worth Rs 67 crore ahead of the schedule recently.
    Moreover, the company’s earnings remained robust in the June quarter this year. Consolidated net sales surged 70 percent to Rs 2,317.55 crore as against Rs 1,363.28 crore in March 2018. Consolidated net profits grew 68.57 percent QoQ to Rs 22.79 crore.
    This month, the share price rose about 11.74 percent. While, on an intraday basis, shares are down 11.53 percent to Rs 135 per share on the NSE.
    arrow down

      Market Movers

      View All
      CompanyPriceChng%Chng