Ixigo’s share price surged more than 9% on Jan 13, breaking a four‑day losing streak after JM Financial raised its recommendation to Buy.
Why JM Financial Upgraded Ixigo
The brokerage said the stock had fallen about 20% since the end of November because investors were worried about slower growth in the flight‑booking business and higher costs from new tech and marketing spend. However, JM Financial believes these concerns are short‑term. It expects Ixigo’s earnings to improve over the next few quarters as the company continues to cross‑sell services across its apps, focus on customer experience, and grow its value‑added offerings.
Key Numbers After the Upgrade
- Share price rose to Rs 232.55, up >9%.
- New target price: Rs 275 per share (down from Rs 300).
- Implied upside from the current price: about 29%.
- Current P/E ratio: 164.28.
- Market capitalization: roughly Rs 10,016 crore.
Recent Performance Snapshot
In the past week the stock slipped more than 3%, and it’s down over 8% for the month. Earlier, it had jumped nearly 30% in the last six months and gained around 61% over the past year.
What This Means for Investors
The downgrade in the target price reflects a modest 4‑8% cut in earnings estimates for FY26‑28, but the lower valuation improves the risk‑reward balance. For retail investors, the upgrade suggests a potential upside if the company’s earnings pick up as expected.
Disclaimer
Remember, this is my perspective, not a prediction. Always do your own research before making any investment decisions.