Ixigo’s stock recently saw a dip of up to 5%, settling at an intraday low of Rs 141.85 per share on October 25, 2024. This shift followed the online travel platform’s robust September quarter results, as some investors turned to profit booking.
Despite healthy earnings, the trading correction in Ixigo presents potential opportunities for those looking to invest in stocks. Let’s look at what the recent financial performance suggests and how strategic moves might affect Ixigo’s position.
In the second quarter of FY25, Ixigo, owned by Le Travenues Technology, posted strong revenue growth. The company’s revenue from operations grew by 26% year-on-year, reaching Rs 206.5 crore. EBITDA surged by an impressive 655% to Rs 22.4 crore, with adjusted EBITDA marking a 326% increase over the previous year at Rs 21 crore. For those interested in investing in stocks, these gains highlight Ixigo’s ability to leverage its offerings in a competitive market.
However, Profit After Tax (PAT) did see a decline, falling to Rs 13.1 crore from Rs 26.7 crore year-on-year. According to Ixigo’s statement, this was largely influenced by a deferred tax cost of Rs 5.2 crore, a share of loss from an associate, and the absence of Rs 29.7 crore of exceptional income recorded in Q2 FY24.
The company has been expanding its market presence by securing a 51% stake in Zoop Web Services for Rs 12.54 crore, aiming to strengthen its services for train travellers. Through Zoop, Ixigo can now offer onboard meal deliveries at 192 stations, which has partnerships with around 400 restaurants. The Zoop acquisition is expected to open up new growth avenues, as the company aims to integrate its services with IRCTC e-catering, creating another reason for investors looking to invest in stocks like Ixigo.
Ixigo also launched its “Food on Train” feature to further streamline its services for train travellers, allowing users to pre-order meals directly to their seats. This feature is positioned to attract more train commuters, with Ixigo leveraging its crowdsourced train status data to offer timely and accurate meal deliveries. The ability to innovate through new products and services remains a significant asset for Ixigo, making it an appealing choice for those considering an opportunity to invest in stocks in the travel tech sector.
At 11:11 am on the day of the decline, Ixigo shares were trading at Rs 144.20 per share, down 3.29%, while the BSE Sensex itself dropped by 0.80% to 79,421.45 levels. Despite the day’s dip, some analysts view the recent correction as a market response to profit booking rather than a reflection of the company’s potential. Investors who are actively looking to invest in stocks may find this correction a strategic entry point, as Ixigo continues to pursue revenue growth and expand through acquisitions.
Ixigo’s approach of integrating various services like Zoop to improve train travel convenience, and its consistent focus on developing its product offerings, underscore its commitment to growth. This growth strategy may resonate well with potential investors looking to invest in stocks, especially in a sector where user experience and innovation drive market demand. Ixigo’s recent developments not only aim to attract a broader user base but also position it for steady revenue growth in future quarters.
With its proactive acquisitions and commitment to product innovation, Ixigo continues to present a promising profile for investors looking to diversify or invest in stocks within the digital travel sector.
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