Diwali Samvat 2082 Stock Pick: TBO Tek Ltd – MNCL’s Top Recommendation

Founded in 2006, TBO Tek (Travel Boutique Online) is one of India’s leading B2B travel distribution platforms, operating in a very large but highly fragmented global outbound travel market. Acting as a two-sided marketplace, TBO connects over 189,000 registered travel buyers including agencies, advisors, tour operators, and OTAs with a vast network of suppliers spanning 1 million+ hotels, 750+ airlines and 48,000+ attractions. It aggregates global travel supply across the travel segments (hotel rentals, airlines, car rentals, transfers, cruises, insurance, rail, etc.) and matches it with demand from a growing base of registered travel buyers including travel agencies, independent travel advisors and tour operators. With an estimated ~1.5-2 million agents and advisors worldwide, global B2B travel market has reached a gargantuan size of over $500bn (out of total $912bn premium global outbound travel market). Within 20 years of operations, TBO Tek has aggressively expanded its foot prints across all the major geographies to become fourth largest global B2B player.

Source: ACE Equity, MNCL Research

Price Performance

Source: ACE Equity, MNCL Research

Shareholding Pattern

Source: ACE Equity, MNCL Research

Scalable model connected to a large global B2B Travel market:

In less than 20 years of operations, TBO Tek has expanded rapidly both through organic route as well as through small ticket investments to get the foothold in new geographies and then scaling it up through its tested business model. Its asset-light, modular platform is designed to efficiently aggregate fragmented supply across hotels, airlines, car rentals, and ancillaries, while connecting with a large and expanding buyer base (~1.9 lakh in FY25 vs ~1.7 lakh in FY24). This creates significant operating leverage as scale increases, enabling TBO to drive consistent topline growth and better return ratios.

Margin Expansion through rising contribution from Hotels & Ancillaries:

While air ticketing remains a key volume driver, TBO is steadily increasing its focus on high-margin verticals such as hotels, sightseeing, cruise liners, transfers, and insurance. This shift is driving an improvement in take-rates and overall profitability, as these segments offer better take rates than air ticket booking. Additionally, the ability to cross-sell ancillaries to its existing buyer base enhances wallet share and creates a more diversified and resilient revenue model.

Strengthening global footprint through strategic acquisitions:

TBO is rapidly evolving from an India-centric player into a truly global B2B travel distribution platform. While domestic B2B Travel market continues to remain dominated by low take-rate Air Ticket business, international business has been witnessing a rapid growth, accounting for 78.6% of the total revenue in Q1FY26. After establishing itself as key player in Europe and the APAC market, TBO has recently acquired Classic Vacations LLC in the US at a total consideration of $125mn. The company is not only expanding geographically but also strategically positioning itself in the global premium outbound travel segments. The acquisition of Classic Vacations in the US, a luxury-focused travel firm, marks a significant step in strengthening its foothold in the North American premium outbound travel, broadening its supplier network, and enhancing cross-border synergies. 

Outlook & Valuation:

TBO Tek is well placed to capitalize on aspirational premium global B2B outbound travel market. The company has been successfully strengthening its global footprints to become fourth largest player in this place. Our one year forward DCF based Target price stands at Rs1853, giving an upside of 19%.

Exhibit 1: Key Financials (Consolidated)

Exhibit 2: Key Indicators

Source: Company TBO Tek Ltd, MNCL Research

STOCK PICKS FOR SAMVAT 2082

*Closing Price as on 10-10-2025

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