RateGain Q3 Results Review - Beat Across; Upbeat CY24 Travel Demand Outlook: Dolat Capital

Dolat Capital Report

Rategain Travel Technologies Ltd. reported 7.4% QoQ growth, (our estimate: 6.6%), led by strong growth across segments. Distribution segment grew by 9.6% QoQ led by mid-quarter rampup of its large deal, after a two back to back declining quarters in H1.

Vertical Wise, desktop as a service (33% of revenue) grew 14.4%, distribution (22% of rev) by 9.6% QoQ, while MarTech grew by a modest 1.8% despite support from adara business (up 4% QoQ), as challenges in BCV unit continues.

Ebitda stood at 20.3% (modest miss), up 57 basis points QoQ driven by operating leverage, with adara margins improving to 18% from loss making last year.

With strong Q3 performance, and continuing tailwind of global travel demand, we expect Rategain to be well-placed to ride the travel boom tide. Maintain Accumulate with a discounted cash flow based target price of Rs. 900 (implies 47 times of FY26E).

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.