Multibagger stock: Rategain Travel shares gain for third straight day, up 140% in a year

Continuing their upward trajectory for the third consecutive trading session, shares of Rategain Travel Technologies jumped by another 3% in today's intraday trade, reaching ₹788 apiece.

Today's rise in the shares follows the company's announcement of a strategic collaboration between its AI-powered airline pricing solution, AirGain, and Summerwind GSA, a distinguished General Sales Agent (GSA) known for its innovative approach to airline representation. 

This partnership aims to revolutionise the airline industry by combining AirGain's advanced pricing intelligence with Summerwind's extensive industry expertise and global reach, as per the company's regulatory filing. 

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On March 21, Brightline Trains selected AirGain for advanced rail and airline pricing intelligence in the U.S. rail market. Prior to that, on March 19th, Budget Car & Truck Rental of Calgary, a leading franchise in Canada, utilised RateGain's Rev-AI's advanced AI technologies to increase their revenue by $1 million.

In February, RateGain launched Navigator, a unified rate insights platform designed to assist commercial teams in tracking demand, monitoring competition, and addressing parity issues from a single window, thereby simplifying the process of maximising RevPAR and reducing manual efforts.

Moreover, the company partnered with FLYR, an AI-powered travel technology provider, in a collaboration aimed at integrating RateGain’s channel management and distribution solutions with FLYR’s AI-powered Revenue Optimisation System (RMS) to help hotels enhance their revenue strategies.

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RateGain Travel Technologies is a global provider of AI-powered SaaS solutions for travel and hospitality that works with 3,200+ customers and 700+ partners in 100+ countries, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion. 

Multibagger Returns

Over the past year, the company has witnessed steady growth in its shares, soaring from ₹325 apiece to the current trading price of ₹781.95, resulting in a remarkable return of 140%. Out of the last 17 months, the shares closed 14 positively, with August 2023 marking the highest monthly gain at 31%.

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Compared to their all-time low price of ₹236 apiece recorded in June 2022, the shares are currently trading a staggering 231% higher. Furthermore, on February 16, the company achieved a new milestone by setting a record all-time high of ₹921 apiece.

Financials

In Q3 FY24, the company continued its strong performance with a significant YoY operating revenue growth of 82.2%, reaching ₹252 crore, alongside an improvement in operating margins to 20.3% from 16.6% in the previous year. This improvement can be attributed to the effective utilisation of operating leverage as the company maintains its commitment to sustainable growth across various sectors.

The company also witnessed remarkable growth in profit after tax, which surged by 3.1 times to ₹40 crore in Q3 FY24 compared to ₹13 crore in the corresponding period last year.

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As inflationary pressures ease and consumer spending on travel is expected to rise in 2024, the industry is poised to invest further in adopting new technologies aimed at simplifying guest acquisition, enhancing retention, and optimising revenue. With a solid presence in key markets and a focus on customer-centric solutions, RateGain is well-positioned to seize opportunities arising from these developments.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.