Antique Broking set a ₹175 target, expecting a 45% CAGR in earnings through FY28.
Since reporting its quarterly earnings post-market hours on August 8, shares of travel services company Yatra Online have surged nearly 40%.
At the time of writing, Yatra’s shares were up 12.7% at ₹129.50, making it among the top gainers in the entire Indian equities market.
Sublime Q1 Performance
Yatra posted a staggering 296% jump in net profit to ₹160 million while revenue more than doubled to around ₹2.10 billion.
The bottom-line gains were attributable to gains in the higher-margin hotels & packages (H&P) businesses driven by sustained momentum in MICE (Meetings, Incentives, Conferences, and Exhibitions) and increased standalone hotel cross-selling to existing customers. The company also added 34 new corporate clients, with an annual billing potential of ₹2 billion.
Brokerage View
Antique Stock Broking retained a ‘Buy’ rating for the stock, while increasing the target price to ₹175 from ₹136.
In a note dated August 12, the brokerage stated that it remains optimistic and believes in Yatra’s growth prospects given its emphasis on corporate business. Increasing share of B2B bookings in the overall business will help in margin expansion, thereby improving profitability, it said.
Antique expects earnings to grow at a 45% CAGR over FY25–28, driven by sustained expansion in the corporate and MICE segments. The brokerage also raised Yatra’s FY26/FY27 earnings estimates by 2% each and increased its target PE multiple to 27x from 24x.
Meanwhile, JM Financial has also revised its target price to ₹170.
Retail Cheer
The strong Q1 performance brought cheer to the streets. Retail sentiment on Stocktwits turned ‘bullish’ from ‘neutral’ before the results. There was also a sharp uptick in messages on the platform around the stock.
The stock has gained 11.5% year-to-date. However, it had shed nearly 15% before the results.
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