Le Travenues Technology (Ixigo) shares jumped over 7% to an intraday high of ₹227.50 on January 13 following JM Financial's upgrade to 'Buy' rating with a target price of ₹275 per share. The brokerage's target implies an upside potential of approximately 30% from current levels, driving renewed investor interest in the online travel aggregator.

JM Financial's Bullish Outlook: Four Key Drivers

Attractive Valuations After Recent Correction

JM Financial highlighted that the recent correction in Ixigo's stock price appears overdone, with shares declining about 20% since early December. The brokerage acknowledged trimming its consolidated revenue estimates and EBITDA projections but believes the price decline has largely addressed valuation concerns.

Despite these adjustments, JM Financial views the correction as offering an attractive long-term entry point, noting that the stock now factors in near-term uncertainties more than warranted while underappreciating its structural strengths and recovery potential.

Strong Long-Term Fundamentals in Travel Ecosystem

The brokerage expects online travel agencies to benefit from structural tailwinds in India's travel ecosystem, including improving infrastructure, better connectivity, and rising affordability. These drivers are particularly strong in tier-2 and smaller cities, where travel demand is growing faster than in tier-1 markets, supported by enhanced multi-modal connectivity.

JM Financial believes Ixigo is well-positioned to capitalize on these trends over the medium to long term, citing several competitive advantages:

• Strong brand recall in tier-2 and smaller markets
• Effective cross-selling across applications
• Consistent focus on customer experience
• Strong adoption of differentiated value-added offerings including Travel Guarantee, Ixigo Assured, and Abhi Assured

Air Industry Disruption Concerns Overdone

The brokerage addressed concerns about air industry disruption, primarily occurring in the first half of December, noting this is not a structural issue for online travel agencies as underlying passenger demand remains strong. As stability returns, JM Financial expects Ixigo to revert to growing faster than other OTAs, supported by improving air connectivity of tier-2+ cities where it maintains strong brand recall through utility-led offerings and regional language customer support.

Measured Hotel Expansion Strategy

JM Financial expects Ixigo to focus on strengthening its product and building curated hotel supply rather than pursuing discount-driven growth as it scales its hotels business. This approach should help keep losses minimal in the foreseeable future. While strategic mergers and acquisitions remain a possibility, management has indicated it will pursue only profitable, capital-efficient, and synergy-accretive acquisitions.

H2FY26 Outlook and Base Effect Considerations

Looking ahead to H2FY26, JM Financial noted that Ixigo had benefited from Kumbh Mela-related travel demand in the same period last year. As normalcy returns this year, the brokerage expects year-over-year GTV metrics to appear optically softer, particularly in Q4FY26, across business segments due to a high base effect, even if underlying demand trends remain stable.

"We therefore believe GTV growth rates would normalize starting 1QFY27, once the Kumbh-led base effect is fully absorbed," JM Financial stated.

Ixigo shares are down 10% since the beginning of 2025, making the current levels attractive according to the brokerage's analysis.

Le Travenues Technology (IXIGO) has announced the establishment of a new fully-owned subsidiary in Singapore, marking a significant step in the company's international expansion strategy.

New Subsidiary Details

The travel technology company has incorporated "Ixigo Pte. Ltd." as its wholly-owned subsidiary in Singapore. This strategic establishment positions the company to tap into the Southeast Asian travel and tourism market.

Strategic Expansion

The incorporation of the Singapore subsidiary represents Le Travenues Technology (IXIGO)'s efforts to expand its geographical footprint beyond the Indian market. Singapore serves as a strategic hub for companies looking to access Southeast Asian markets, offering favorable business conditions and regulatory framework.

Market Positioning

This development aligns with the company's growth strategy in the travel technology sector. The new subsidiary is expected to facilitate the company's operations in the region and provide a platform for potential business opportunities in Southeast Asia's growing travel market.

The establishment of Ixigo Pte. Ltd. as a fully-owned subsidiary in Singapore marks Le Travenues Technology (IXIGO)'s expansion into Southeast Asian markets, signaling the company's commitment to growth and its strategic focus on the region's travel industry.