IPO Note : Yatra Online Limited by Swastika Investmart Ltd
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Yatra Online Limited is India’s largest corporate travel services provider in terms of the number of corporate clients and the third largest online travel company in India among key OTA players in terms of gross booking revenue and operating revenue, for Fiscal Year 2023. Its business is based on a common technology platform that serves its customers through multiple mobile applications as well as its website www.yatra.com
OBJECTS OF THE ISSUE
* Repayment or prepayment of borrowings availed by the company from banks and financial institutions.
* General corporate purposes.
OUTLOOK AND VALUATION
Yatra Online Limited is the largest corporate travel service provider and a well-known online travel company. It has a proven track record and a targeted marketing strategy. Its business is mainly focused on B2B channels, where it serves a large customer base. With IPO funding, the company is also planning for some acquisitions for further growth.
But the travel industry is highly competitive, and such companies have to rely on various third parties as well. Additionally, YOL is heavily dependent on the airline ticketing business. The company has been at a loss for the last few years, but it became profitable in FY23
The P/E valuation is 205.7x (however it is not the right parameter to judge such companies), while its revenue multiple is 5.6x which is low. But After considering other risk factors, we will avoid this IPO.
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