India's Yatra to get profitability boost from Global Travels buy, Investec says

Yatra Online

03/09/2024 09:32

** Shares of Yatra Online Ltd  YATR.NS  down 3.9% at 144
rupees 
    ** Brokerage Investec says Yatra's purchase of Globe Travels
for 1.28 bln rupees ($15.3 mln) will boost its profitable
corporate business
    ** YATR said purchase will help add 360 corporate customers
    ** Investec says corporate business will account for 62% of
YATR's gross booking value from 57% in the June quarter
    ** Brokerage adds corporate business is more profitable than
consumer business as the latter has higher customer acquisition
costs - these costs should go down after the acquisition and
lead to higher profitability
    ** Investec retains "buy" rating and Street high PT of 180
rupees on YATR stock
    ** Avg rating is "strong buy" with median PT 159 rupees -
LSEG data
    
    ($1 = 83.9330 Indian rupees)

 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com))