Shares of this multibagger IT stock jumped approximately 4 percent in Thursday’s trading session after the company announced its product being selected for Rail and Airline pricing intelligence in the U.S. Markets.
With a market capitalization of Rs 8,957.51 crores, the stocks of RateGain Travel Technologies Limited started their trading session on Thursday at Rs 754.15 and closed the session at Rs 760.30, gaining approximately 4 percent compared to the previous closing levels of Rs 729.95 apiece.
Such bullish share price movements were observed today after the company, through a regulatory exchange filing, provided some key business updates.
The company announced that ‘Brightline Trains’, seamlessly connecting travelers to top destinations between South and Central Florida, has selected “AirGain”, a RateGain Product, for advanced rail and airline pricing intelligence in the U.S. Rail Markets.
AirGain is known for its AI-powered revenue management solutions for trains, cruises, airlines, and online travel agencies.
“AirGain’s rate intelligence capabilities enable transport services like Brightline to access the most accurate and up-to-date fare information for making better decisions compared to traditional systems.”, commented Mr. Vinay Varma, Senior Vice President and General Manager, AirGain.
During the recent financial quarters, the company’s prime business indicators, viz, its operating revenues as well as after-tax numbers, showed positive movements with the former increasing from Rs 235 crores during Q2FY24 to Rs 252 crores during Q3FY24, and the latter, during the same period, rising from Rs 30 crores to Rs 40 crores.
In addition, the company’s ratio analysis portrays the return ratios, viz, return on equity (RoE) and return on capital employed (RoCE), being on the rise with the former rising from 1.36 percent during FY21-22 to 9.63 percent during FY22-23, and the latter, from 2.61 percent to 9.13 percent.
As per the latest investor presentations, the company’s revenue guidance increased to nearly 70 percent for FY’2024, and EBITDA guidance stands close to 19.50 percent. Moreover, the company expects strong growth momentum in the DaaS segment, fueled by the growth in volumes and demand for AI models.
Keeping a purview of the last one year, the company’s stock delivered multibagger returns of approximately 130 percent to its holders, i.e., if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.30 lakhs.
RateGain Travel Technologies Limited is a SaaS company in the travel and hospitality industry offering solutions across a wide spectrum of verticals including airlines, hotels, meta-search companies, and many more. Geographically, it derives a majority of its revenue from the United Kingdom.
Written by Amit Madnani
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