Sharekhan recommended Buy on Cox & Kings (CKL) with target of Rs 395 against current market price Rs 298.

Commenting on the investment rationale, the stock broker said, "An exit from the low-margin camping business and focus on strengthening the balance sheet bode well for CKL from the long-term perspective. The company aims to become one of the largest leisure travel players globally and is also keen to expand its education tourism business in the other geographies. This would result in a stable double-digit earnings growth and generate better cash flows in the near to medium term. This makes CKL one of the better players in the tourism space.

CKL’s leisure tourism business is susceptible to economic vagaries and currency risk .Hence, we recommend a Buy on the stock with a price target of Rs 395 (valuing the stock at 9x FY2016E EV/EBIDTA)."

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