ixigo Shares Rally 3% After JM Financial Initiates Coverage With ‘Buy’

ixigo Shares Rally 3% After JM Financial Initiates Coverage With ‘Buy’

SUMMARY

Shares of travel tech major ixigo jumped nearly 3% to INR 146.90 apiece during the intraday trading on the BSE today (January 14)

The rally in the stock came after JM Financial initiated coverage on the stock with a 'buy' rating, saying ixigo is the emerging dark horse in the online travel agency (OTA) market

The brokerage gave it a price target price of INR 180, which implies an upside potential of 26% from the stock’s previous close

Shares of Ixigo jumped nearly 3% to INR 146.90 apiece during the intraday trading on the BSE today (January 14) after brokerage JM Financial initiated coverage on the stock with a ‘buy’ rating, saying the company is the emerging dark horse in the online travel agency (OTA) market.

The brokerage set a price target price of INR 180 for ixigo, which implies an upside potential of 26% from the stock’s previous close of INR 142.90.

Analysts at JM Financial noted that despite being a late entrant, ixigo is currently the second-largest and fastest-growing OTA in India in terms of gross transaction volume.

Segment-wise, it is the market leader in train ticketing and is quickly strengthening its position in flight and bus ticketing, they highlighted.

In the first half of the financial year 2024-25 (H1 FY25), ixigo clocked a GTV growth of 34% on a year-on-year basis, outperforming its peers. In comparison, MakeMyTrip reported a GTV growth of 23% YoY, while EaseMyTrip and Yatra reported a decline of 1% and 9%, respectively, during the same period.

The brokerage further said that ixigo, which follows a multi-app, multi-brand approach, is well positioned to capitalise on the growth in the travel market in tier II+ cities with 94% of its transactions booked having either origin or destination as non-tier I cities.

“Unlike most OTAs that focus on better pricing or discounts, ixigo focuses on differentiation basis superior customer experience. The company achieves this basis out-of-the-box utility products and services and value-added services (for a small fraction of the ticket value) that enable customers to modify or cancel their bookings without having to worry about cancellation costs,” JM Financial said.

The brokerage expects the online travel platform to deliver a GTV and revenue growth of 26% and 23%, respectively, over FY24-27. Further, the travel tech major is likely to expand its EBITDA and adjusted profit after tax (PAT) by 45% and 33%, respectively, during the period, according to JM Financial.

It is to be noted that Le Travenues Technology, the parent company of ixigo, made its market debut last year, with its shares listing at INR 135 apiece on the BSE, a 45% premium over its IPO issue price.

While the stock has tanked over 12% in the last 5 trading sessions, it has given an upward run of over 5% since its public debut to date.

At 1:36 PM, shares of ixigo were trading 1.82% higher at INR 145.50 apiece on the BSE.

ixigo’s consolidated net profit declined 51% to INR 13.08 Cr in Q2 FY25 from INR 26.70 Cr in the year-ago quarter on account of higher tax expenses. Operating revenue rose 26% YoY to INR 206.47 Cr during the quarter under review.

 

You have reached your limit of free stories
Become A Startup Insider With Inc42 Plus

Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in india's startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

ixigo Shares Rally 3% After JM Financial Initiates Coverage With ‘Buy’-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

ixigo Shares Rally 3% After JM Financial Initiates Coverage With ‘Buy’-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

ixigo Shares Rally 3% After JM Financial Initiates Coverage With ‘Buy’-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

ixigo Shares Rally 3% After JM Financial Initiates Coverage With ‘Buy’-Inc42 Media
ixigo Shares Rally 3% After JM Financial Initiates Coverage With ‘Buy’-Inc42 Media
You’re in Good company