RateGain Q1 Results Review - Inline, Though Contract Growth Decelerated; Maintaining A Buy: Anand Rathi

Anand Rathi Report

RateGain Travel Technologies Ltd.’s Q1 revenue grew 21.2% YoY to ~Rs 2.6 billion (in line with the Street’s and our estimates). Ebitda grew 31.7% YoY to Rs 498 million, and the margin expanded 152 basis points YoY to 19.1% (versus our 20% estimate).

Management expects ~20% YoY organic revenue growth in FY25, with ~150-200bps YoY Ebitda margin improvement in coming quarters as well as for the full year (~19.8% margin in FY24).

Factoring in the lower Ebitda margin, we cut our FY25e/FY26e earnings 3.2%/3.4% and maintain a Buy rating, with a 12-month target price of Rs 935 (previously Rs 970), 45 times FY26e earnings.

Risks:

Slowdown in demand for travel, keener competition, hoteliers/online travel agents creating and offering their own solutions.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.