Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by successful integrations and margin expansion initiatives.
Basis of our Recommendation
RateGain Travel Technologies is poised for robust organic revenue growth, with a projected CAGR of 13.3% over FY26-28, driven by successful integrations and new product launches. The company anticipates significant EBITDA margin expansion supported by cost synergies and improved free cash flow. However, risks such as potential travel demand slowdowns and competitive pressures could impact performance.
Why We Like This Stock
- Projected revenue growth of 65-70% y/y in FY27e
- Successful integration of Sojern enhancing cross-selling opportunities
- Expected EBITDA margin expansion from 18.5% in FY26 to 20% in FY28e
Things To Watch Out For
- Potential slowdown in travel demand
- Increased competitive intensity in the market
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 957 | 1,077 | 1,824 | 2,598 | 3,421 |
| Profit Before Tax (Cr.) | 189 | 271 | 287 | 418 | 543 |
| PBT Margin | 19.7% | 25.2% | 15.7% | 16.1% | 15.9% |
| Net Profit (Cr.) | 145 | 205 | 222 | 324 | 420 |
| EPS | 12.3 | 17.4 | 18.8 | 27.4 | 35.6 |
Company Overview
Show Company Profile
RateGain Travel Technologies Limited, a software as a service (SaaS) company, provides solutions for hospitality and travel industries in India, North America, the Asia-Pacific, Europe, and internationally. It offers data as a service, such as competitive rate intelligence for hotels, airlines, OTAs, car rentals, tour operators, and cruises; revenue optimization for car rentals and tour operators; and travel-intent for hotels, airlines, car rentals, and travel-retail. The company also provides distribution solutions for enterprise/metasearch/GDS connectivity, channel manager, and content management. In addition, it offers Martech for managed media, digital media, and social media management services. The company was formerly RateGain Travel Technologies Private Limited and changed its name to RateGain Travel Technologies Limited in 2021. RateGain Travel Technologies Limited was founded in 2004 and is based in Noida, India.