Rategain Travel Technologies Ltd is Rated Hold

Current Rating and Its Significance

The 'Hold' rating assigned to Rategain Travel Technologies Ltd indicates a neutral stance for investors. It suggests that while the stock may not offer immediate strong upside potential, it also does not warrant a sell recommendation given its underlying qualities. Investors are advised to maintain their positions but monitor the stock closely for any significant changes in fundamentals or market conditions that could alter its outlook.

Quality Assessment

As of 21 January 2026, Rategain Travel Technologies demonstrates a solid quality profile. The company holds a 'good' quality grade, supported by a notably low debt-to-equity ratio averaging zero, which reflects a conservative capital structure and limited financial risk. Additionally, the firm has exhibited healthy long-term growth, with net sales increasing at an annualised rate of 39.28% and operating profit surging by 72.71%. This robust growth trajectory underscores the company’s ability to expand its core operations effectively.

However, recent quarterly results have been flat, with profit before tax excluding other income (PBT less OI) for the September 2025 quarter falling by 10.5% compared to the previous four-quarter average. This indicates some near-term pressure on profitability, which investors should consider when evaluating the stock’s quality.

Valuation Considerations

Despite the strong growth fundamentals, the stock is currently rated as 'expensive' in terms of valuation. The price-to-book value stands at 4.2, which is relatively high, signalling that the market is pricing in significant future growth expectations. The return on equity (ROE) is a moderate 11.5%, which, while respectable, does not fully justify the elevated valuation multiples.

Moreover, the company’s price-to-earnings-to-growth (PEG) ratio is 3.3, suggesting that earnings growth is not fully aligned with the current price, potentially limiting upside from a valuation standpoint. Investors should be cautious about the premium they are paying relative to the company’s earnings growth prospects.

Financial Trend Analysis

The financial trend for Rategain Travel Technologies is currently flat. While the company has delivered strong sales and operating profit growth over the long term, recent quarterly earnings have shown a decline, indicating some volatility in profitability. Over the past year, profits have increased by 11.3%, yet the stock price has declined by 9.37%, reflecting a disconnect between earnings performance and market sentiment.

This divergence may be attributed to broader market factors or sector-specific challenges, but it highlights the importance of monitoring ongoing financial performance closely. The flat financial trend grade suggests that investors should temper expectations for near-term earnings acceleration.

Technical Outlook

From a technical perspective, the stock is mildly bullish. Despite some recent short-term declines—such as a 0.51% drop on the latest trading day and a 6.48% year-to-date decrease—the stock has shown resilience with a 40.76% gain over the past six months. This mixed technical picture suggests that while momentum is not strongly positive, there remains underlying support for the stock price.

Institutional holdings are relatively high at 27.07%, indicating that knowledgeable investors maintain confidence in the company’s prospects. Institutional investors typically have greater resources to analyse fundamentals, which can provide some stability to the stock price.

Performance Relative to Market

Rategain Travel Technologies has underperformed the broader market over the last year. While the BSE500 index has generated a return of 4.98% during this period, the stock has declined by 9.37%. This underperformance may reflect valuation concerns, recent earnings softness, or sector-specific headwinds. Investors should weigh this relative weakness against the company’s growth potential and quality metrics when considering their investment decisions.

What This Rating Means for Investors

The 'Hold' rating for Rategain Travel Technologies Ltd suggests that investors should maintain their current positions without expecting significant near-term gains or losses. The company’s strong quality fundamentals and healthy long-term growth prospects are balanced by an expensive valuation and flat recent financial trends. The mildly bullish technical outlook and substantial institutional ownership provide some support for the stock price.

Investors considering this stock should monitor upcoming quarterly results closely, particularly for signs of earnings recovery or further softness. Given the premium valuation, any deterioration in financial performance could weigh heavily on the stock. Conversely, sustained growth and improved profitability could justify a re-rating in the future.

Overall, the 'Hold' rating reflects a cautious but balanced view, recognising both the strengths and challenges facing Rategain Travel Technologies as of 21 January 2026.

Summary of Key Metrics as of 21 January 2026

• Mojo Score: 60.0 (Hold)


• Market Capitalisation: Smallcap


• Debt to Equity Ratio: 0 (low leverage)


• Net Sales Growth (Annualised): 39.28%


• Operating Profit Growth (Annualised): 72.71%


• Profit Before Tax less Other Income (Sep 2025 Qtr): ₹43.99 crores, down 10.5%


• Return on Equity (ROE): 11.5%


• Price to Book Value: 4.2 (expensive)


• PEG Ratio: 3.3


• Institutional Holdings: 27.07%


• Stock Returns: 1D -0.51%, 1W -2.62%, 1M -1.49%, 3M -1.25%, 6M +40.76%, YTD -6.48%, 1Y -11.88%


• BSE500 Index 1Y Return: +4.98%

Investors should consider these factors in the context of their portfolio objectives and risk tolerance when evaluating Rategain Travel Technologies Ltd.

Unlock special upgrade rates for a limited period. Start Saving Now →