RateGain Q3 Results Review - Strong With Ebitda Margin Beat; Maintaining A Buy: Anand Rathi

Anand Rathi Report

RateGain Travel Technologies Ltd.'s reported huge, 82.2% YoY, revenue growth to ~Rs 2.52 billion (organic ~14.3% YoY, largely in line with our etimate; 1.7% above the street’s expectations).

Ebitda ballooned 123.5% YoY to Rs 513 million, and the margin, 376 basis point YoY to 20.3%. The company raised its FY24 revenue growth guidance further to ~69% YoY, from ~65% in Q2 and 55-58% at the beginning of the year.

The FY24 Ebitda growth guidance was raised to ~19.5%, from ~19% earlier and 17% at the start of the year. Factoring in all this, we raise our FY25e/FY26e earnings 11.3%/12.7%.

We maintain our Buy on the stock with a higher 12-mth target price of Rs 1,050 (previously Rs 900), 45 times FY26e earnings.

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

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