Analysts Are Updating Their RateGain Travel Technologies Limited (NSE:RATEGAIN) Estimates After Its Second-Quarter Results

There's been a notable change in appetite for RateGain Travel Technologies Limited (NSE:RATEGAIN) shares in the week since its quarterly report, with the stock down 14% to ₹717. RateGain Travel Technologies reported ₹2.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹4.38 beat expectations, being 4.9% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on RateGain Travel Technologies after the latest results.

Check out our latest analysis for RateGain Travel Technologies

Following the latest results, RateGain Travel Technologies' seven analysts are now forecasting revenues of ₹11.1b in 2025. This would be a credible 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to ₹17.60. Before this earnings report, the analysts had been forecasting revenues of ₹11.4b and earnings per share (EPS) of ₹17.61 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The consensus has reconfirmed its price target of ₹913, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on RateGain Travel Technologies' market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values RateGain Travel Technologies at ₹960 per share, while the most bearish prices it at ₹800. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that RateGain Travel Technologies' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.9% growth on an annualised basis. This is compared to a historical growth rate of 44% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than RateGain Travel Technologies.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target held steady at ₹913, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple RateGain Travel Technologies analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for RateGain Travel Technologies that you should be aware of.

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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.