Shares of online travel companies TBO Tek, Le Travenues Technology and Yatra Online rallied up to 8% on Monday, June 15, following brokerage Motilal Oswal's bullish sector outlook. According to reports from CNBC TV18, the brokerage reaffirmed its 'Buy' recommendation on TBO Tek while initiating coverage on Ixigo and Yatra Online with positive ratings, driving significant investor interest in the travel technology sector. As per The Economic Times, the price targets imply an upside of 16-22% over their Monday closing prices, reflecting the brokerage's confidence in the sector's structural growth potential.
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. As reported by CNBC TV18, the brokerage expects the travel platform to report a gross transaction value (GTV) CAGR of 23% between FY26 and FY28. The company's operating margins are projected to improve 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. According to the latest Motilal Oswal report, TBO Tek remains the brokerage's preferred choice, expected to benefit from growing travel demand and increasing adoption of its business-to-business travel platform.
Motilal Oswal initiated coverage on Ixigo with a 'Buy' rating and a target price of ₹217. According to the brokerage's analysis reported by CNBC TV18, the company is expected to see strong growth across its core travel segments, with GTV CAGRs of 22% in flights, 17% in trains and 34% in buses between FY26 and FY28. The brokerage expects profitability to improve significantly, with margins projected to expand to nearly 10% by FY28 from about 6% currently, and estimates EPS growth of 51% annually over the period. As per the latest Motilal Oswal report, Ixigo has built a sizeable customer base and remains one of the leading consumer-focused travel platforms in India, with its Flight, Train and Bus segments expected to deliver strong growth rates.
Motilal Oswal began coverage on Yatra Online with a 'Buy' recommendation and a target price of ₹125. As reported by CNBC TV18, 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. These segments are expected to contribute a larger share of revenue going forward, driving the strong growth trajectory for the online travel platform. According to the latest Motilal Oswal report, Yatra could benefit from increasing demand for hotel bookings, holiday packages and corporate travel solutions, with a larger contribution from these segments expected to improve margins and profitability over time.
According to Motilal Oswal's latest analysis, India's online travel market is expanding rapidly from a fragmented offline model to a digital ecosystem driven by Online Travel Agencies. The brokerage expects the Indian OTA market to grow from about ₹2.08 lakh crore in FY23 to nearly ₹3.84 lakh crore by FY28, supported by rising disposable incomes, improving internet penetration and growing preference for online travel bookings across both metro cities and smaller towns. The sector is expected to grow faster than many global markets, with online travel penetration projected to increase from around 54% currently to 65% by FY28. As per Motilal Oswal, the next stage of growth is expected to be led by Artificial Intelligence-enabled services, personalised recommendations and real-time travel planning, with the brokerage citing an underpenetrated online travel ecosystem as a key driver supporting their optimistic sector outlook.
