According to reports from The Financial Express, Jefferies has retained its 'Buy' rating on TBO Tek and raised its price target to ₹1,905, indicating an upside of 18%. The brokerage based the target on 35 times estimated September 2028 price-to-earnings and estimated a 41% compound annual growth rate in profit after tax between FY26 and FY29. Jefferies said it had raised its FY27 and FY28 earnings-per-share estimates by 3% to 8% on improving growth visibility. The brokerage classified MakeMyTrip as 'NR' and did not assign an active rating or price target, while Ixigo was also classified as 'NR' without a price target. TBO's estimated FY28 enterprise value to earnings before interest, taxes, depreciation and amortisation multiple stood at 20 times, compared with 23 times for MakeMyTrip and 34 times for Ixigo. On estimated FY28 price-to-earnings multiples, MakeMyTrip was at 25 times, compared with 35 times for TBO and 41 times for Ixigo. MakeMyTrip's market capitalisation was $5.7 billion, compared with $1.8 billion for TBO Tek and $0.8 billion for Ixigo. The brokerage noted that MakeMyTrip's India subsidiary had confidentially filed a draft red herring prospectus with the Securities and Exchange Board of India.
As reported by The Financial Express, TBO Tek delivered the strongest quarter among the three companies in Jefferies' comparison. The company's organic gross transaction value grew 22% year-on-year, while organic revenue rose 16% and organic earnings before interest, taxes, depreciation and amortisation increased 28% in the first quarter of FY27. Total adjusted profit after tax increased 51%. MakeMyTrip delivered 21% constant-currency gross bookings growth and 17% growth in earnings before interest, taxes, depreciation and amortisation. Ixigo posted 19% gross booking value growth, but earnings before interest, taxes, depreciation and amortisation declined 5%. TBO's estimated FY28 enterprise value to earnings before interest, taxes, depreciation and amortisation multiple stood at 20 times, compared with 23 times for MakeMyTrip and 34 times for Ixigo. On estimated FY28 price-to-earnings multiples, MakeMyTrip was at 25 times, compared with 35 times for TBO and 41 times for Ixigo. The comparison showed why Jefferies' preference was not simply based on booking growth, with TBO combining 22% organic gross transaction value growth with 28% organic earnings before interest, taxes, depreciation and amortisation growth.
According to The Financial Express, TBO's hotel gross transaction value rose from ₹5,059.7 crore in 1QFY26 to ₹7,577.7 crore in 1QFY27, while airline gross transaction value increased from ₹3,059.6 crore to ₹3,576.6 crore over the same period. The hotel take rate improved significantly to 10.55% in the June quarter, compared with 2.27% for airlines. Jefferies highlighted that North America accounted for around 25% of hotel gross transaction value. MakeMyTrip's accommodation network had expanded to more than 1.01 lakh properties, with OneCircle loyalty coverage expanding to more than 13,000 hotels. The brokerage noted that intercity cabs had grown more than 40% and the experiences business had expanded to more than 50 cities with more than 3,000 offerings. TBO's earnings before interest, taxes, depreciation and amortisation as a percentage of gross profit increased to 26% from 23.4%, while the earnings before interest, taxes, depreciation and amortisation margin increased to 15.5% from 15.2%.
As reported by The Financial Express, Jefferies' peer valuation table showed TBO with the lowest estimated FY28 enterprise-value-to-earnings-before-interest, taxes, depreciation and amortisation multiple among the three companies. TBO's estimated FY28 enterprise value to earnings before interest, taxes, depreciation and amortisation multiple stood at 20 times, compared with 23 times for MakeMyTrip and 34 times for Ixigo. On estimated FY28 price-to-earnings multiples, MakeMyTrip was at 25 times, compared with 35 times for TBO and 41 times for Ixigo. MakeMyTrip's market capitalisation was $5.7 billion, compared with $1.8 billion for TBO Tek and $0.8 billion for Ixigo. The brokerage noted that MakeMyTrip's India subsidiary had confidentially filed a draft red herring prospectus with the Securities and Exchange Board of India. MakeMyTrip's India subsidiary had confidentially filed a draft red herring prospectus with the Securities and Exchange Board of India, with proceeds earmarked for liquidity, convertible-security buybacks and growth opportunities.
According to The Financial Express, artificial intelligence was increasingly being embedded across booking, customer support, personalisation, software development and operations across all three companies. MakeMyTrip's Myra 2.0 had generated more than 8 million conversations during the quarter, with 45% of usage coming from tier-two and smaller markets. Artificial intelligence generated around 75% of code, while the voice bot autonomously resolved around 50% of customer interactions. For Ixigo, artificial-intelligence costs were expected to remain elevated in the near term as the company continued investing in its technology platform. The brokerage described artificial intelligence as a 'competitive differentiator, not disruptor'. Ixigo NEXT was being developed around agentic artificial intelligence, proprietary models, workflow automation and travel-focused small language models. Management expected artificial-intelligence costs to remain elevated but believed the investment could improve productivity, product quality and scalability without proportional increases in headcount.
