RateGain Travel up 4% after it inks pact with cloud-based property platform

Shares of RateGain Travel rallied 4.3 per cent to Rs 359 per share in Thursday’s intra-day trade after the company inked pact with HotelKey – a cloud-based property management for hotels. In comparison, the S&P BSE Sensex was up 0.2 per cent at 59,877 levels, as of 10:33 am.
 

In the past three months, shares of RateGain have soared over 25 per cent, as against 2.7 per cent decline in the S&P BSE Sensex. Earlier, the stock had hit 52-week high of Rs 417 per share on April 7, 2022, while sunk to a 52-week low of Rs 236 per share on June 30, 2022.
 

Since RateGain identifies itself as the global provider of SaaS solutions for travel and hospitality, the management expects this partnership to integrate the company’s global distribution, central reservations, and pricing capabilities into HotelKey’s PMS platform. 
 

“Through this collaboration, hotels on the HotelKey platform will see RateGain’s pricing and distribution tools on the HotelKey platform. This will enable hoteliers to save time and achieve efficiencies, making better distribution decisions faster and, ultimately, saving money as well as building revenue,” the management said.
 

HotelKey’s client portfolio includes roughly 4 lakh rooms live and over 4,000 properties live, including 500 independent hotels around the world. 
 

That apart, in the October-December quarter of FY23 (Q3FY23), the company’s net profit soared multi-fold to Rs 13.2 crore from Rs 9 lakh, in the year-ago period. Sequentially, profit grew 1.5 per cent from Rs 13 crore in Q2FY23. 
 

Revenue from operations, meanwhile, surged 39.7 per cent year-on-year (YoY) to Rs 138.29 crore in Q3FY23, as against Rs 99 crore, in the year-ago period. Margins, on the other hand, improved to 16.5 per cent in Q3FY23 from 14.1 per cent in Q2FY23.
 

After a strong set of results in Q3FY23, analysts at Anand Rathi maintained their ‘buy’ call on the counter, with a target price of Rs 450 per share.
 

“The management is positive on travel and continues to see it as a mega trend, and guided to ~30 per cent YoY organic growth, with 18 per cent to 19 per cent margins in Q4FY23. We raise our FY234E/FY24E/FY25E Ebitda estimates to 18.2 per cent/10.8 per cent/10.3 per cent,” the brokerage firm added.