Ixigo (Le Travenues): Initiate at Buy: board for the long haul; Hotels provide an optionality

Research evidence excerpt

Ixigo (Le Travenues): Initiate at Buy: board for the long haul; Hotels provide an optionality

More details inside: Key debates and FAQs on Ixigo… 52-Week Range 147.00 INR-339.15 INR

Mrkt Val / Shares Out (mn) 764 USD / 438.2

Market Value (mn) 73,159 INRRoom for consensus upgrades; Hotels provides optionality

We look at China OTAs (Trip & Tongcheng) to draw parallel of user market segmentation Average Daily Value (mn) 3.05 USD

and see room for both Ixigo and MakeMyTrip to succeed (details inside China OTA case Free Float 59.4%

study: Tongcheng & Trip.com catering to different users). We believe consensus does BofA Ticker / Exchange XIXIF / NSI

not fully factor in the operational leverage Ixigo is generating and our FY27/28E are 7- Bloomberg / Reuters IXIGO IN / LETR.NS

8% ahead of consensus EBITDA. Ixigo trades at FY28E EV/EBITDA of 31X (OTA avg: ROE (2026E) 5.5%

10X/MMYT: 20X/India Internet: 37X). We see this premium justified, given Ixigo’s better Net Dbt to Eqty (Mar-2025A) -37.5%

growth, and strong EBITDA trajectory vs peers. In our base case, hotels contribute 2-3%

of GTV/revenues. However in blue-sky scenario, hotels segment drives incremental Rs GTV: Gross transaction value; NBU: Next

115/share value (refer Exhibit 12). Key catalysts: End of Middle East conflict, easier billion users; OTA: Online travel agent; VAS:

comps in FY27, stronger bus growth. Risks: Upside: Steady market share gains, margin Value added services; MAU: Monthly active

improvements; Downside: Higher competition, AI apps/Agentic AI-led disintermediation. users; MTU: Monthly transacting users; IRCTC:

Indian Railway Catering and Tourism Estimates (Mar) (Rs) 2024A 2025A 2026E 2027E 2028E

Net Income (Adjusted - mn) 758 599 740 1,486 2,171 Corporation; PSP: Principal Service Providers