RateGain Travel Technologies Limited

Technology — Software - Application · NSE

₹830.00+₹2.60 (+0.31%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of RateGain Travel Technologies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

RateGain Travel Technologies Limited, a software as a service (SaaS) company, provides solutions for hospitality and travel industries in India, North America, the Asia-Pacific, Europe, and internationally.

IndustrySoftware - Application

SectorTechnology

Employees713

Annual revenue₹1,824 Cr

How does it make money?

Turns over ₹1,824 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 713 employees supports ₹2.56 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin21.7%

Net margin10.7%

Revenue / employee₹2.56 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 9.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE9.8%

ROE9.7%

Peer median ROE32.0%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 11.1% and earnings to grow about 21.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.1%

Est. earnings growth+21.5%

Analysts12

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +223% while net margin moved -12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+223%

Margin effect-12%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.82 — moves roughly with the market
✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

65/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

52/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

40.5x

3Y Median

51.8x

40 monthly readings · mean 64.0x · range 24.7x–130.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 22% below its 3y median of 51.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 145% above the peer median of 16.5x.

vs. its own history

Cheap

51.8x median over 40 months · -22%

vs. sector peers

Expensive

16.5x median of 4 peers · +145%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

40.5x

P/B

4.89x

EV/EBITDA

26.8x

PEG

0.97

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 19.7% to 21.7% over 3 years.
Cash generation is improving
Free cash flow is up 383% over 3 years.
Valuation below its historical average
At 40.5x the stock trades 22% below its own median of 51.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 5263% over 3 years — worth checking what it funded.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 5263% over 3 years, from ₹18 Cr to ₹949 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 19.7% to 21.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 22% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹230 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 145% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 36% a year✓ 47.8% CAGR
Latest reported year was 187.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹230 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 9.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹9,834 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.89x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹20.48

Profitable

Profitable on a per-share basis

ROE

9.7%

Moderate

Moderate capital efficiency

ROCE

9.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.47x

Low

Conservative leverage

Revenue Growth (YoY)

187.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

101.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹230 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹830

P/E (Forward)

22.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.1%

Good

Healthy core-business profitability

Net Margin

10.4%

Good

Strong bottom-line conversion

Current Ratio

1.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

844.6 / 883.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹565 Cr	₹957 Cr	₹1,077 Cr	₹1,824 Cr	+47.8%
EBITDA	₹112 Cr	₹234 Cr	₹307 Cr	₹396 Cr	+52.5%
EBITDA Margin	19.7%	24.4%	28.5%	21.7%	—
PAT (Net Profit)	₹68 Cr	₹145 Cr	₹209 Cr	₹194 Cr	+41.6%
EPS	₹6.29	₹12.84	₹17.72	₹16.43	+37.7%
ROE	9.6%	10.0%	12.4%	9.7%	—
ROCE	9.1%	12.8%	16.0%	9.8%	—
Total Debt	₹18 Cr	₹17 Cr	₹16 Cr	₹949 Cr	+277.1%
Free Cash Flow	₹47 Cr	₹148 Cr	₹113 Cr	₹230 Cr	+69.1%

🟢 Revenue has grown at 47.8% a year over 3 years.

🟢 EBITDA has grown at 52.5% a year over 3 years.

🟢 EBITDA Margin has risen from 19.7% to 21.7% over 3 years (+2.0 pts).

🟢 PAT (Net Profit) has grown at 41.6% a year over 3 years.

🟢 EPS has grown at 37.7% a year over 3 years.

🟡 ROE has held roughly flat at 9.7% over 3 years.

🟡 ROCE has held roughly flat at 9.8% over 3 years.

🔴 Total Debt has grown at 277.1% a year over 3 years.

🟢 Free Cash Flow has grown at 69.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,560 Cr

Total Liabilities

₹1,554 Cr

Total Debt

₹949 Cr

Cash & Equivalents

₹173 Cr

Operating Cash Flow

₹234 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

22.4%

Insider Holding

53.8%

Analyst Consensus

Recommendations

10 Buy · 0 Hold · 2 Sell

Target Price (Mean)

₹1,102.17

+32.8% vs CMP

Target Range

₹650 – ₹1,350

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

2 mixed4 general

RateGain Travel zooms 92% from March low; should you buy, hold or sell?

Business Standard, 15 Jun

RateGain Travel Technologies Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Simply Wall Street, 10 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Rategain Travel Technologies Share Price Target 2027 to 2030

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

RateGain Travel Technologies (RATEGAIN.NS) Slips 1.81% to ₹836.15 as Stock Holds Above Key Support - Price Surge Stocks

https://www.siam.in/, 02 Oct

RateGain Travel Technologies shares hit 52-week high after firm ties up with Duetto Partner

Upstox, 16 Jun

Buy RateGain Travel Technologies; target of Rs 1000: Anand Rathi

Moneycontrol.com, 18 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong14.6/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate7.9/15

🟡ValuationFair8.3/15

🟡RiskModerate4.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 36% a year47.8% CAGR
✓EBITDA margin holds above 20%21.7%
✗Debt / EBITDA stays below 2x2.4x
✓Free cash flow remains positive₹230 Cr
✓ROCE stays above 8%9.8%