Yatra Online Ltd Valuation Shifts to Fair Amid Market Volatility

Valuation Metrics and Market Context

As of 25 Feb 2026, Yatra Online Ltd trades at ₹116.20, down sharply by 18.83% from the previous close of ₹143.15. The stock has seen a significant correction from its 52-week high of ₹201.85, while remaining above its 52-week low of ₹65.70. This price movement has contributed to a recalibration of its valuation multiples, with the Price-to-Earnings (P/E) ratio now at 31.79 and the Price-to-Book Value (P/BV) at 2.24.

These figures mark a shift from the company’s previous expensive valuation status to a fair valuation grade, as assessed by MarketsMOJO. The downgrade from a Buy to a Hold rating on 29 Dec 2025, accompanied by a Mojo Score of 61.0, reflects a more cautious stance amid the recent price decline and evolving fundamentals.

Comparative Analysis with Peers

When benchmarked against its industry peers within the Tour and Travel Related Services sector, Yatra Online’s valuation appears more reasonable. For instance, TBO Tek and Le Travenues remain expensive with P/E ratios of 60.90 and 121.80 respectively, while Easy Trip Planners trades at a lofty P/E of 78.02. In contrast, Thomas Cook India stands out as an attractive valuation opportunity with a P/E of 20.01 and a notably lower EV/EBITDA multiple of 9.84.

Yatra’s EV/EBITDA ratio of 20.85, while higher than Thomas Cook’s, is significantly lower than the 39.75 and 93.85 multiples seen in TBO Tek and Le Travenues respectively. This suggests that Yatra Online is now positioned more favourably in terms of enterprise value relative to earnings before interest, taxes, depreciation and amortisation.

Financial Performance and Quality Metrics

Despite the valuation moderation, Yatra Online’s operational metrics indicate modest returns. The company’s latest Return on Capital Employed (ROCE) stands at 5.18%, while Return on Equity (ROE) is 6.82%. These figures are relatively subdued, reflecting ongoing challenges in generating robust profitability within a competitive and cyclical industry.

Additionally, the PEG ratio of 0.28 suggests that the stock’s price growth is low relative to earnings growth expectations, which may appeal to value-oriented investors seeking growth at a reasonable price. However, the absence of a dividend yield limits income appeal for yield-focused portfolios.

Stock Performance Relative to Sensex

Yatra Online’s recent stock returns have underperformed the broader market benchmark, the Sensex. Over the past week, the stock declined by 25.27%, compared to a modest 1.47% drop in the Sensex. The one-month return shows a similar trend with a 19.25% fall against a 0.84% gain in the Sensex. Year-to-date, Yatra Online has lost 33.01%, while the Sensex has gained 3.51%.

However, the stock has delivered strong longer-term returns, with a 50.89% gain over the past year, significantly outperforming the Sensex’s 10.44% rise. This divergence highlights the stock’s volatility and sensitivity to sector-specific factors, including travel demand fluctuations and macroeconomic conditions.

Valuation Grade Change and Market Implications

The shift from an expensive to a fair valuation grade signals a more balanced risk-reward profile for Yatra Online. Investors who previously viewed the stock as overvalued may now find the current multiples more palatable, especially given the company’s growth prospects in a recovering travel market.

Nonetheless, the Hold rating and Mojo Grade of 61.0 suggest that caution remains warranted. The company’s moderate profitability metrics and the competitive landscape imply that upside may be limited unless operational efficiencies or revenue growth accelerate meaningfully.

Outlook and Investor Considerations

Looking ahead, Yatra Online’s valuation appears more aligned with its fundamentals and sector dynamics. The fair valuation status, combined with a PEG ratio below 0.3, may attract investors seeking growth potential at a reasonable price. However, the stock’s recent price volatility and underperformance relative to the Sensex underscore the importance of monitoring broader economic trends and travel sector recovery.

Investors should also consider peer valuations and operational metrics when assessing Yatra Online’s attractiveness. While Thomas Cook India offers a more attractive valuation, Yatra’s position as a fair-valued stock with a sizeable market cap grade of 3 provides a middle ground for those balancing growth and risk.

Conclusion: Valuation Reset Offers Balanced Entry Point

Yatra Online Ltd’s recent valuation adjustment from expensive to fair reflects a market recalibration amid price declines and evolving fundamentals. While the stock’s P/E and EV/EBITDA multiples remain elevated relative to some peers, the shift improves its price attractiveness for investors seeking exposure to the travel sector’s recovery.

However, the Hold rating and moderate profitability metrics counsel prudence. Investors should weigh the company’s growth prospects against sector risks and consider alternative opportunities within the industry. The stock’s recent underperformance relative to the Sensex also highlights the need for careful timing and risk management.

Overall, Yatra Online’s valuation reset provides a more balanced entry point, but investors should remain vigilant and monitor operational developments and broader market conditions closely.

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