Thomas Cook India's shares rise after CRISIL upgrades outlook to 'Positive'

Thomas Cook India’s stock price zoomed 3.2 per cent at Rs 225 per share on the BSE in Thursday’s intraday trade.The stock is trading close to its 52-week high of Rs 228.85, hit on May 05, 2024. 

The recent share price surge came after the company in an exchange filing said that its rating has been upgraded from ‘Stable’ to ‘Positive’ by the Indian rating agency CRISIL. 

“CRISIL Ratings has upgraded its outlook on the bank loan facilities and corporate credit rating (CCR) of Thomas Cook India Limited (TCIL) to ‘Positive’ from ‘Stable’ while reaffirming the ratings at ‘CRISIL AA-/ Positive CRISIL A1+’,” the company said in an exchange filing on Thursday. 

The rating factors in improvement in the Thomas Cook India group’s overall operating performance, driven by strong growth in revenues - expected to sustain over the medium term and structural reduction in cost leading to better operating margin and ROCE, the company said in a statement

Overall, revenue for the group is estimated to continue growing at double digits over the medium term. Operating margins improved to 6.0 per cent in fiscal 2024 versus 5.3 per cent in fiscal 2023. The margins are expected to sustain at similar levels over the medium, the management said. 

The travel services provider liquidity has also improved with cash and cash equivalents of Rs 1,518 crore as on March 31, 2024 compared to Rs 1,009 crore as on March 31, 2023. 

At 01:00 PM; the stock of the company gave most of its gain and was trading marginally higher at Rs 218.30 per share on the BSE. By comparison the BSE Sensex climbed up by 0.29 per cent.

Meanwhile, tyre manufacturer JK Tyre and Industries also saw its outlook revised to ‘Stable’ from ‘Positive’ by domestic rating agency Care Ratings. 

“CARE Ratings has upgraded the Long-term rating for Bank Facilities of the Company to CARE AA- from CARE A+ and reaffirmed the Short-term Bank Facilities rating of CARE A1+. The outlook has been revised from Positive to Stable,” the company said in an exchange filing on Thursday. 

At 01:06 PM; the shares of JK Tyre were trading 0.47 per cent lower at Rs 403.20 per share on the BSE.