3 weeks ago
Jefferies Prefers TBO Tek Over MakeMyTrip, Ixigo; Sees 18% Upside
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.
Jefferies retained a 'Buy' rating on TBO Tek and raised its price target to Rs 1,905, implying an 18% upside.
TBO Tek's organic gross transaction value grew 22%, organic EBITDA rose 28%, and adjusted profit after tax jumped 51% in the June quarter.
MakeMyTrip delivered 21% constant-currency gross bookings growth, though its flight bookings declined 2%.
Ixigo's gross booking value grew 19%, but EBITDA fell 5% on lower air take rates and higher investments in hotels and AI.
Hotels emerged as the biggest market-share opportunity, with North America accounting for about 25% of TBO's hotel gross transaction value.
- Who
- Jefferies (the brokerage) and Indian travel-tech companies TBO Tek, MakeMyTrip, and Ixigo (LE Travenues Technology)
- What
- Jefferies rated TBO Tek 'Buy' with 18% upside and compared the three companies' June-quarter performance, growth, and valuations
- Where
- India
- When
- Following the June quarter (first quarter of FY27) results
- Why
- TBO Tek showed the strongest organic growth and operating leverage, while hotels emerging as the key market-share opportunity supported the brokerage's preference
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









