Shares of prominent Indian online travel companies, including TBO Tek, Le Travenues Technology (Ixigo), and Yatra Online, witnessed a significant rally on Monday, with their stock prices climbing by up to 10 percent. The surge was primarily attributed to a bullish outlook from brokerage firm Motilal Oswal, which highlighted robust growth prospects and improving profitability within the online travel sector.
While a broader market rally, spurred by news of a US-Iran peace deal, contributed to the positive sentiment, the specific uplift for these travel stocks was largely driven by the brokerage's optimistic coverage and recommendations.
Brokerage Bullish on Travel Sector Growth
Motilal Oswal reaffirmed its 'Buy' recommendation for TBO Tek, setting a target price of Rs 1,765 per share. The firm values TBO Tek at 38 times its estimated FY28 earnings and projects a Gross Transaction Value (GTV) Compound Annual Growth Rate (CAGR) of 23 percent between FY26 and FY28. Operating margins are anticipated to improve from approximately 14 percent currently to over 16 percent by FY28, potentially leading to an Earnings Per Share (EPS) CAGR of 43 percent over the same period.
For Le Travenues Technology (Ixigo), Motilal Oswal initiated coverage with a 'Buy' rating and a target price of Rs 217. The brokerage expects strong growth across Ixigo's core travel segments, forecasting GTV CAGRs of 22 percent in flights, 17 percent in trains, and 34 percent in buses between FY26 and FY28.
Similarly, Yatra Online also received a 'Buy' recommendation upon initiation of coverage by Motilal Oswal, with a target price of Rs 125. The brokerage anticipates Yatra Online to achieve an earnings growth CAGR of 41 percent between FY26 and FY28, primarily fueled by sustained expansion in its hotels and holiday packages segments, which are expected to contribute an increasing share of overall revenue.
Market Performance Highlights
- TBO Tek shares rose 10 percent to Rs 1498.65, pushing its market capitalization to Rs 15,614 crore.
- Yatra Online shares gained 8.48 percent, reaching Rs 111.85, with its market cap climbing to Rs 1687.30 crore.
- Le Travenues Technology (Ixigo) shares increased by 6.16 percent to Rs 189.30, bringing its market cap to Rs 7957 crore.
According to Motilal Oswal, India's online travel industry is poised for robust expansion. This growth is underpinned by increasing demand for travel, a rising adoption of digital booking platforms, and consistent growth in both leisure and corporate travel across the country.