Le Travenues Technology (Ixigo) shares witnessed a sharp rally, surging up to 10% after JM Financial upgraded the stock to 'Buy' from 'Reduce'. The travel services provider's stock reached an intraday high of ₹232.55 per share, rising nearly 10% from its previous day close of ₹213.00 per share.

JM Financial's Rationale for Upgrade

JM Financial pointed out that Ixigo shares had corrected by around 20% since the end of November 2025, primarily due to concerns over slower growth in the flights business in Q3 and Q4 FY26. The brokerage attributed these concerns to recent disruptions in the travel industry and an unfavorable comparison base due to the Kumbh Mela-related boost from the previous year.

The investment firm also noted uncertainty around margins as the company increased investments in technology, supply-side systems, and promotions for its hotels' OTA business. However, JM Financial characterized the current phase as a temporary earnings and sentiment overhang that should ease in coming quarters.

Revised Target Price and Growth Prospects

While JM Financial reduced its target price to ₹275 per share from ₹300, following a 4-8% reduction in FY26-28 earnings estimates and a lower valuation multiple, it still sees over 29% upside from the previous closing price of ₹213.00. The brokerage believes Ixigo remains well-positioned to grow faster than peers owing to its effective cross-sell of services across various apps, sharp focus on superior customer experience, and robust traction for its differentiated value-added services.

Financial Performance Analysis

Le Travenues Technology operates online platforms including ixigo, confirmtkt, and abhibus, providing information and booking services for the travel industry across airlines, trains, hotels, buses and cabs. The company maintains over 90% penetration in Tier 2 and Tier 3 cities with over 740 million downloads and over 85% repeat customers, having transacted over 50.4 million users.

Year-on-Year Performance

Quarter-on-Quarter Performance

Market Position and Outlook

With a market capitalization of ₹9,854 crores, Le Travenues Technology has established itself as one of India's leading travel platforms. Despite the recent quarterly losses, JM Financial's upgrade reflects confidence in the company's medium to long-term growth prospects, driven by its strong market position and differentiated service offerings in the competitive travel booking sector.

Le Travenues Technology (Ixigo) shares experienced a strong rally of over 9% on January 13, reaching ₹232.55 per share and breaking a four-session losing streak. The surge came after JM Financial upgraded its rating on the stock to 'Buy' from 'Reduce', citing that the recent correction had created an attractive investment opportunity.

JM Financial's Investment Rationale

JM Financial's analysis revealed that Ixigo shares had corrected approximately 20% since the end of November 2024, primarily due to expectations of slower growth in the flights business during Q3 and Q4 FY26. The brokerage attributed this anticipated slowdown to recent industry disruptions and an unfavorable base effect from the Kumbh Mela benefit received in the previous year.

The domestic brokerage also highlighted uncertainty around margins due to the company's ramp-up in technology, supply-side, and promotional investments toward its hotels' online travel agency (OTA) business. However, JM Financial emphasized that these challenges represent a temporary earnings and sentiment overhang that should ease over the coming quarters.

Revised Target Price and Valuation

Despite the upgrade, JM Financial adjusted its target price downward to ₹275 per share from the previous ₹300 per share. This revision was based on a 4-8% cut in FY26-28E earnings estimates and a reduction in the target P/E ratio to 60x from 65x.

Long-term Growth Prospects

From a medium-to-long-term perspective, JM Financial believes Ixigo remains well-positioned to outperform peers. The brokerage highlighted several competitive advantages, including the company's effective cross-selling of services across various applications, sharp focus on superior customer experience, and robust traction for its differentiated value-added services.

The recent correction has materially improved the risk-reward profile, which prompted JM Financial's double upgrade from 'Reduce' to 'Buy'.

Stock Performance Analysis

The stock's recent performance shows mixed trends across different timeframes:

Currently, Ixigo trades at a P/E ratio of 164.28, with a market capitalization of ₹10,016.00 crore. The stock's volatility reflects the market's mixed sentiment regarding near-term challenges versus long-term growth potential in the online travel booking sector.