Current Rating Overview
MarketsMOJO currently assigns Yatra Online Ltd a 'Hold' rating, reflecting a balanced view of the stock’s prospects. This rating indicates that investors should maintain their existing positions rather than aggressively buying or selling the stock at this time. The 'Hold' status is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals.
Quality Assessment
As of 10 January 2026, Yatra Online Ltd’s quality grade is assessed as average. The company’s return on equity (ROE) stands at a modest 4.60%, signalling relatively low profitability generated from shareholders’ funds. While this figure suggests room for improvement in management efficiency, it is important to note that the company operates in the highly competitive tour and travel services sector, where margins can be constrained by external factors such as fluctuating travel demand and economic cycles.
Valuation Perspective
The valuation grade for Yatra Online Ltd is considered fair. The stock trades at a price-to-book (P/B) ratio of approximately 3.1, which is at a discount compared to its peers’ historical averages. This valuation reflects a cautious market stance, balancing the company’s growth prospects against its current profitability metrics. Investors should note that despite the fair valuation, the company’s price-earnings-to-growth (PEG) ratio is a low 0.2, indicating that the stock price may not fully reflect the rapid earnings growth experienced recently.
Financial Trend and Growth
The financial trend for Yatra Online Ltd is very positive, underscoring strong growth momentum. As of 10 January 2026, the company has demonstrated robust expansion in net sales, growing at an annual rate of 56.74%, while operating profit has surged by 101.05%. The latest half-yearly results reveal a profit after tax (PAT) of ₹30.28 crores, representing an impressive growth rate of 167.02%. Additionally, the company has reported its highest operating cash flow for the year at ₹-88.65 crores and a return on capital employed (ROCE) of 7.76%, the highest recorded in the half-year period.
Yatra Online Ltd has declared positive results for five consecutive quarters, signalling consistent operational improvements and effective cost management. This sustained growth trajectory is a key factor supporting the 'Hold' rating, as it suggests the company is on a path to strengthening its financial foundation despite current profitability challenges.
Technical Analysis
From a technical standpoint, the stock exhibits mildly bullish characteristics. Over the past six months, Yatra Online Ltd’s share price has appreciated by nearly 93%, and over the last year, it has delivered a total return of 49.27%. However, short-term price movements have been mixed, with a 1-day decline of 1.95% and a 1-week drop of 6.58%, reflecting some volatility. The technical grade supports a cautious approach, suggesting that while the stock has upward momentum, investors should be mindful of potential fluctuations in the near term.
Investor Participation and Market Sentiment
Institutional investor participation has declined recently, with a 4.44% reduction in stake over the previous quarter, leaving institutions holding 17.47% of the company’s shares. This decrease may reflect a more conservative stance by sophisticated investors, who often have greater resources to analyse fundamentals. Retail investors should consider this trend carefully, as institutional behaviour can be a leading indicator of market sentiment and risk appetite.
Summary for Investors
In summary, Yatra Online Ltd’s 'Hold' rating by MarketsMOJO reflects a nuanced view of the company’s current position. The stock offers attractive growth potential supported by strong financial trends and improving operational results. However, average quality metrics and fair valuation, combined with some technical volatility and reduced institutional interest, counsel a measured investment approach. Investors are advised to monitor the company’s progress closely, particularly improvements in profitability and management efficiency, before considering an increase in exposure.
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Performance Metrics at a Glance
As of 10 January 2026, Yatra Online Ltd’s stock returns illustrate a mixed but generally positive trend. The stock has declined 1.95% in the last trading day and 6.58% over the past week, while the one-month return stands at -2.97%. However, the medium to long-term outlook is more encouraging, with a 3-month gain of 0.62%, a six-month surge of 92.99%, and a one-year return of 49.27%. Year-to-date, the stock has experienced a 5.94% decline, reflecting some recent market pressures.
Balance Sheet and Debt Position
Yatra Online Ltd maintains a conservative capital structure, with an average debt-to-equity ratio of zero. This absence of debt reduces financial risk and provides flexibility for future investments or expansion. The company’s strong net sales growth of 67.23% and positive operating cash flow trends further reinforce its solid financial footing.
Outlook and Considerations
Investors should weigh the company’s rapid growth and improving profitability against its modest returns on equity and cautious valuation. The 'Hold' rating suggests that while Yatra Online Ltd is not currently a strong buy, it remains a viable investment for those seeking exposure to the travel services sector with a balanced risk profile. Monitoring upcoming quarterly results and institutional investor activity will be crucial for assessing any shifts in the company’s outlook.
Conclusion
Yatra Online Ltd’s current 'Hold' rating by MarketsMOJO, last updated on 29 December 2025, reflects a comprehensive evaluation of the company’s fundamentals, valuation, financial trends, and technical signals as of 10 January 2026. This rating advises investors to maintain their positions while observing the company’s ongoing performance and market developments. The stock’s strong growth potential is tempered by average profitability and valuation considerations, making it a balanced choice for cautious investors.
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