Earlier the company has had a good track record and has rewarded the shareholders with a 2:3 bonus. Currently, it is ex-bonus. The fortunes of the company is related to the tourist industry. If the hotel industry is buoyant on the bourses, may be some of that speculation will rubb on Thomas as well. Foreign currency forms the major share of revenue for the company. It is both into retail as well as wholesale. Business and leisure travellers access the retail outlets and provide 65 per cent of the foreign currency division. The company is making an effort to extend its product range to the global market and in it can hope to draw help from its parent.

At home, it covers most of the major cities well and abroad it has 43 branches. The wholesale division tackles other dealers and banks. The company provides comprehensive services to the tourist. It arranges air tickets, handles passports and takes care of hotel accommodation. Tours inland is the other concentration.

Insurance is the new mantra for players in all industry and Thomas cannot afford to ignore the opportunity. It intends to take up travel related insurance, providing an entire portfolio.

The portfolio would cover baggage, missed flights and the like. The portfolio would be completed by an entry into the credit card segment. That would enable the company to give a single window service. It's performance for the year ending December 1999 has been encouraging. It posted a net profit of Rs 18.04 crore on an income base of Rs 70.80 crore. This encouraging trend has been maintained in the first quarter with a net profit of Rs 4.31 crore on a sale of Rs 20.02 crore.

Scrips of the hotel industry are buoyant. However, that is no clue to say that the tourist inflow will increase. But as far as Thomas is concerned, it earns even on outbound traffic. So ultimately you need to connect up the fortune of this company with the trend in the economy. That by itself is supportive. The tourism industry is also catching up with domestic passengers going abroad for holidays.

In the final analysis, Thomas has done what it can it terms of its portfolio of services. What is left to be seen is how it controls its costs and takes care of its bottom line.

The scrip is currently set to rise. Post-bonus there has not been enough trading record. It could face a resistance at Rs 436. But for long-term investors the downside risk is minimal.