After JM Financial Starts Coverage With "Buy," Ixigo Shares Rise 3%

SUMMARY: During today's (January 14) intraday trading on the BSE, shares of travel tech giant Ixigo surged by almost 3% to INR 146.90 per share. Following JM Financial's 'buy' rating and initial coverage of the stock, which stated that Ixigo was the new dark horse in the online travel agency (OTA) market, the stock experienced a surge. The firm set a target price of INR 180 for it, indicating a 26% potential increase from the stock's last closing.During intraday trading on the BSE today (January 14), shares of IxigoIxigo Datalabs_in-article-icon surged by almost 3% to INR 146.90 each after brokerage JM Financial began covering the stock with a "buy" rating, stating that the company is the new dark horse in the online travel agency (OTA) market.Ixigo's target price of INR 180 was set by the brokerage, indicating a 26% potential upside from the stock's previous closing of INR 142.90.Ixigo outperformed its competitors with a GTV growth of 34% year over year in the first half of the fiscal year 2024–25 (H1 FY25). In contrast, EaseMyTrip and Yatra recorded a 1% and 9% drop in GTV over the same time, respectively, while MakeMyTrip reported a 23% YoY growth.

With 94% of its booked transactions having origins or destinations in non-tier I cities, the brokerage added that Ixigo, which employs a multi-app, multi-brand strategy, is well-positioned to benefit from the expansion of the travel industry in tier II+ cities."Ixigo concentrates on distinction based on improved client experience, in contrast to the majority of OTAs who prioritize greater pricing or discounts. The company accomplishes this by offering value-added services and unconventional utility products and services that allow customers to change or cancel their reservations without worrying about incurring cancellation fees (for a tiny portion of the ticket price), according to JM Financial. Over FY24–27, the brokerage anticipates that the online travel platform will generate revenue growth of 23% and GTV growth of 26%. Furthermore, according to JM Financial, the travel tech major is anticipated to increase its adjusted profit after tax (PAT) and EBITDA by 33% and 45%, respectively, throughout the time.It should be mentioned that Le Travenues Technology, the parent company of ixigo, made its market debut last year. The shares of the firm were listed on the BSE at INR 135 each, which was 45% more than the price at which the IPO was issued. Although the stock has lost more than 12% in the last five trading sessions, it has so far seen an increase of more than 5% since going public.