3 weeks ago

Jefferies Prefers TBO Tek Over MakeMyTrip, Ixigo; Sees 18% Upside

Jefferies Prefers TBO Tek Over MakeMyTrip, Ixigo; Sees 18% Upside
TBO Tek vs MakeMyTrip vs Ixigo: Why Jefferies has a Buy on one stock, sees 18% upside · financialexpress.com

A company called Jefferies studies businesses and tells people which ones might be good to invest in.

It looked at three Indian travel websites that help people book flights, trains, buses, and hotel rooms: TBO Tek, MakeMyTrip, and Ixigo.

Jefferies liked TBO Tek the best and said its stock could go up by 18%.

TBO grew its bookings by 22% and made much more profit than before.

MakeMyTrip is the biggest of the three companies, but it grew a little more slowly.

Ixigo also grew its bookings, but it spent a lot of money on new hotels and computer helpers, so its profit went down a bit.

Jefferies says hotel bookings are growing faster than flight bookings.

It also says artificial intelligence is helping these companies serve customers better.

Remember, this is just one company's opinion, and investing in stocks can be risky.

Key facts

Jefferies rating
TBO Tek 'Buy'; MakeMyTrip and Ixigo 'Not Rated'
Price target
Rs 1,905 (18% upside)
TBO organic GTV growth (Q1 FY27)
22% year-on-year
TBO adjusted profit after tax growth
51% year-on-year
MakeMyTrip constant-currency gross bookings growth
21%
Ixigo EBITDA growth
-5% (decline)
Market capitalisation
MakeMyTrip $5.7 billion; TBO Tek $1.8 billion; Ixigo $0.8 billion
TBO FY28E EV/EBITDA multiple
20x (lowest of the three)

Quotes

Jefferies analyst

Analyst at Jefferies reviewing TBO Tek’s financials

“"Mgmt said the near term profitability trade‑off is intended to accelerate investments in Hotels and AI."”
financialexpress.com
“"The qtr marked a clear margin inflection, with Oplev driving EBITDA growth ahead of gross profit."”
financialexpress.com

Sources

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