India travel booking platform seen rebounding as airline disruptions ease; analysts see 29% upside to new price target
JM Financial upgraded Le Travenues Technology Ltd., the operator of India’s ixigo travel booking platform, to buy from reduce, arguing the stock’s roughly 20% tumble since late November has created an attractive entry point for long-term investors.
The brokerage set a 12-month price target of 275 rupees, implying 29% upside from the current trading price of 213 rupees. The target was lowered from 300 rupees previously, reflecting trimmed earnings estimates.
“The stock price correction has tempered the valuation and opened an attractive long-term entry point—pricing in near-term uncertainties disproportionately and underappreciating structural advantages and recovery potential,” the analysts wrote in a note dated January 12.
The selloff was driven by two factors: expectations of slower growth in ixigo’s flights business during the October-March period due to airline industry disruptions, and concerns about margin pressure as the company ramps up investments in its hotels business.
JM Financial dismissed the airline disruptions as a temporary headwind rather than a structural threat. “We believe the recent disruption in the air industry is not a structural issue for OTAs as underlying passenger demand remains strong,” the report stated.
The brokerage also flagged a tough comparison base from last year’s Kumbh Mela religious festival, which boosted travel demand. “As normalcy returns this year, we expect YoY GTV metrics to be optically softer, particularly in 4QFY26,” the analysts noted, adding that growth rates should normalize by the first quarter of fiscal 2027.
Despite cutting its FY26-28 earnings estimates by 4-8% and lowering the target price-to-earnings multiple to 60 times from 65 times, JM Financial maintained a bullish medium-term outlook. The firm expects ixigo to outperform rival online travel agencies due to its strong brand recognition in smaller Indian cities, effective cross-selling across its apps, and differentiated services like Travel Guarantee and ixigo Assured.
On the company’s push into hotel bookings, the analysts said it offers “upside optionality with limited risks,” noting that management has committed to pursuing only profitable, capital-efficient acquisitions.
Ixigo shares have gained nearly 39% over the past 12 months despite the recent correction, outperforming the broader BSE Sensex by 28 percentage points. The company, which offers train, flight, and bus ticketing services, has a market capitalization of approximately 93.2 billion rupees ($1 billion).
JM Financial projects revenue growth of 38% in fiscal 2026 to 12.6 billion rupees, with EBITDA margins expected to compress slightly to 6.2% before recovering to 11% by fiscal 2028.
