RateGain Downgraded to ‘Add’ from ‘Buy’ by Kotak Institutional Equities

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Shares of RateGain Travel Technologies fell 1.5% on September 18 after Kotak Institutional Equities downgraded the stock to ‘add’ from ‘buy’ following a recent rally in the scrip.

Kotak highlighted the company’s improved growth and profitability over the past few quarters, driven by a broader recovery in travel and wallet share gains, aided by enhanced capabilities and focus on cost optimisation. However, growth has been concentrated in pockets, limiting confidence on sustenance at elevated levels.

“After a strong run of 45% in the past three months, upsides are moderate,” said Kotak Institutional Equities.

The brokerage firm said valuations capture most of the optimism, which is why it downgraded the stock rating.

RateGain provides SaaS solutions for travel and hospitality, helping them accelerate revenue generation through acquisition, retention, and wallet share expansion.

In summary:

  • RateGain Travel Technologies was downgraded to ‘add’ from ‘buy’ by Kotak Institutional Equities.
  • The downgrade comes after a strong run in the stock price, with upsides seen as moderate.
  • Kotak highlighted the company’s improved growth and profitability, but noted that growth has been concentrated in pockets.
  • Valuations are also seen as capturing most of the optimism.

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