We Might See A Profit From Yatra Online, Inc. (NASDAQ:YTRA) Soon

We feel now is a pretty good time to analyse Yatra Online, Inc.'s (NASDAQ:YTRA) business as it appears the company may be on the cusp of a considerable accomplishment. Yatra Online, Inc. operates as an online travel company in India and internationally. With the latest financial year loss of ₹351m and a trailing-twelve-month loss of ₹65m, the US$60m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Yatra Online's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Yatra Online

Expectations from some of the American Hospitality analysts is that Yatra Online is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of ₹205m in 2025. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 94% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Yatra Online given that this is a high-level summary, but, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Yatra Online which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Yatra Online, take a look at Yatra Online's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Historical Track Record: What has Yatra Online's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Yatra Online's board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.