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Midcap Buy International Travel House – ICICI

September 6, 2007

International Travel House (ITH) continued to benefit from the huge growth in the travel and tourism Industry. The business growth was on account of higher commissions in the travel segment and increased fleet of cars in the transport segment. ITH’s car rental business is also doing extremely well. ITH is considering foray into online Travel Booking space.

Net sales grew 16.42% to Rs 18.93 crore in the quarter ended June 2007 as against Rs 16.26 crore during the previous quarter last fiscal, while net profit jumped 49.13% to Rs 2.58 crore as against Rs 1.73 crore.

At the current price of Rs 152, the stock trades at a P/E of 10.31x its FY08E EPS of Rs 14.75. On an EV/ EBIDTA basis, the stock is available at 3.65x FY08E earnings. ICICI values the stock at a P/E multiple of 15x its FY08E earnings with a price target of Rs 221 and maintain OUTPERFORMER rating on the stock.

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