The brokerage reaffirmed its ‘Buy’ recommendation on TBO Tek, while initiating coverage on Ixigo and Yatra Online with positive ratings.
For TBO Tek, Motilal Oswal maintained its target price of ₹1,765 per share and valued the company at 38 times its estimated FY28 earnings.
The brokerage expects the travel platform to report a gross transaction value (GTV) CAGR of 23% between FY26 and FY28. It also sees operating margins improving to more than 16% by FY28 from around 14% currently, which could help drive an earnings-per-share (EPS) CAGR of 43% over the same period.
On Ixigo, Motilal Oswal initiated coverage with a ‘Buy’ rating and a target price of ₹217. The brokerage expects strong growth across the company’s core travel segments, forecasting GTV CAGRs of 22% in flights, 17% in trains and 34% in buses between FY26 and FY28.
It also expects profitability to improve, with margins projected to expand to nearly 10% by FY28 from about 6% currently. The brokerage estimates EPS growth of 51% annually over the period.
For Yatra Online, Motilal Oswal began coverage with a ‘Buy’ recommendation and a target price of ₹125. The brokerage expects earnings to grow at a CAGR of 41% between FY26 and FY28, supported by continued expansion in its hotel and holiday package businesses, which are expected to contribute a larger share of revenue going forward.
The brokerage believes India’s online travel sector remains well-positioned to benefit from rising travel demand, increasing digital adoption and expanding leisure and business travel activity.
