Shares of RateGain Travel Technologies surged over 8% in Wednesday’s session after brokerage firm Investec initiated coverage with a ‘buy’ rating and a target price of Rs 775.
The stock rose 8.01% to Rs 473.25, gaining Rs 35.10 from its previous close of Rs 438.15. During the session, it traded in a range of Rs 451.35 to Rs 476.70, taking its market capitalization to approximately Rs 5,592 crore. The company currently trades at a price-to-earnings ratio of 31.18.
Investec highlighted that RateGain operates as a differentiated travel-tech platform offering Data-as-a-Service (DaaS), distribution, and marketing technology solutions to hotels, online travel agencies (OTAs), and destination marketing organizations, enabling them to maximize revenue.
The brokerage noted three key positives supporting the investment case. First, RateGain’s integrated capability stack is considered unmatched in the industry. Second, the potential disruption from artificial intelligence is expected to have minimal adverse impact on its business model. Third, execution speed will remain critical for the company to sustain its competitive moat and strategic advantage.
Investec also pointed out that RateGain’s current market capitalization is roughly one-fourth that of Affle 3i, despite operating a travel-focused MarTech franchise at a comparable scale.
As of Wednesday’s session, the stock remained in focus with strong buying interest following the brokerage initiation.
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