₹158: That's What Analysts Think Yatra Online Limited (NSE:YATRA) Is Worth After Its Latest Results

Last week, you might have seen that Yatra Online Limited (NSE:YATRA) released its first-quarter result to the market. The early response was not positive, with shares down 2.3% to ₹129 in the past week. Revenues were ₹1.0b, with Yatra Online reporting some 6.5% below analyst expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Yatra Online

Taking into account the latest results, the current consensus from Yatra Online's five analysts is for revenues of ₹4.73b in 2025. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Yatra Online is also expected to turn profitable, with statutory earnings of ₹2.78 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹4.88b and earnings per share (EPS) of ₹4.18 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

The consensus price target fell 6.1% to ₹158, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Yatra Online, with the most bullish analyst valuing it at ₹180 and the most bearish at ₹140 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Yatra Online is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Yatra Online's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.1% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Yatra Online is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Yatra Online. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Yatra Online. Long-term earnings power is much more important than next year's profits. We have forecasts for Yatra Online going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Yatra Online's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.