According to Anand Rathi's research report dated June 17, 2026, the brokerage has issued a buy rating on RateGain Travel Technologies with an upwardly revised target price of Rs 1000, up from the previous target of Rs 875. The recommendation is based on the company's strong fundamentals and growth prospects in the travel technology sector. As per The Hindu BusinessLine, the brokerage maintains this rating despite the stock's recent run-up, citing attractive valuations and strong growth momentum.
RateGain Travel Technologies reported organic revenue growth of ~8.8% in INR terms (~4% y/y in USD terms) in FY26, which was impacted by client-specific issues across Distribution and MarTech segments. However, the company demonstrated exceptional deal-winning capabilities with a 25.7% year-on-year increase in deal-wins in FY26, excluding deals from Sojern despite the acquisition being integrated for only five months. The deal pipeline rose about 14% despite the strong deal-win growth, suggesting robust momentum going forward. According to The Hindu BusinessLine, this deal momentum is attributed to multiple product launches over the last 12 months and higher go-to-market spending of $5 million.
The recent acquisition of Sojern brings significant opportunities, as it adds 13,000 hotel properties that can be cross-sold with RateGain's Distribution and DaaS offerings, while also providing opportunities to cross-sell Sojern's services to RateGain's existing customer base. As reported by The Hindu BusinessLine, there is substantial potential to leverage this integration for enhanced revenue generation. The brokerage highlights that the company is expected to deliver organic revenue growth of ~13.3% CAGR over FY26-28e, which could potentially exceed this rate with strong execution capabilities.
While RateGain maintained a net cash position up to FY25, it funded its acquisition of Sojern partially through borrowings (50% of total consideration of $250 million), resulting in a net debt position in FY26. However, with limited capital expenditure requirements due to its SaaS model, the company's free cash flow is expected to increase going forward, led by improving margins and consolidation of Sojern operations. According to The Hindu BusinessLine, the company is expected to return to a net cash position in FY28e.
Despite the recent run-up in the stock price, the company is still trading at attractive valuations of 34.2/26.7x FY27/28e EPS. The brokerage has revised its valuation methodology, now valuing the stock at 30x FY28e EPS (versus 26x previously), supporting the upward revision in target price. As per The Hindu BusinessLine, even after the recent run-up, the stock continues to trade at attractive valuations, justifying the maintained buy rating with the revised target price of Rs 1000.
