Multibagger RateGain Travel stock jumps over 6% to hit 4-month high on Malaysia Airlines contract

Shares of RateGain Travel Technologies, a leading global provider of SaaS solutions for the travel and hospitality industries, surged 6.4% in today's intraday trading session, reaching a four-month high of ₹834.90 per share. 

This increase followed RateGain's announcement of a multi-year partnership with Malaysia Airlines Berhad (“Malaysia Airlines”), the national carrier of Malaysia.

In this strategic collaboration, Malaysia Airlines will harness RateGain’s advanced AirGain platform to enhance its competitive position with superior pricing intelligence capabilities. The partnership aims to elevate Malaysia Airlines’ operational performance across its extensive domestic and international flight network. 

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Amidst intensifying competition in the aviation sector, integrating the AirGain platform equips Malaysia Airlines to not only compete effectively but also set industry benchmarks.

By providing real-time insights into competitive pricing dynamics, AirGain empowers Malaysia Airlines to refine pricing strategies, seize daily growth opportunities, and elevate customer satisfaction levels, the company said in an exchange filing. 

Earlier in June, RateGain also announced a partnership with Green Motion International, a prominent eco-friendly car rental company, reinforcing its position as a preferred revenue management partner for Green Motion's global franchise network spanning 650 locations across 73 countries. 

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Through RateGain's Rev-AI platform, Green Motion gains access to over 25 real-time demand indicators, enabling precise market insights and dynamic pricing adjustments tailored by car segment, channel, and location.

RateGain Travel operates globally, providing AI-powered SaaS solutions for the travel and hospitality industries, serving over 3,200 customers, and partnering with more than 700 entities across 100 countries. Its solutions focus on accelerating revenue generation through customer acquisition, retention, and expanding wallet share.

Solid returns

In the past year, the company's stock has demonstrated robust growth, surging from ₹434 per share to the current trading price of ₹814, delivering an impressive return of 88%. Over the last 15 months, the stock closed positively in 11 instances, with August 2023 recording the highest monthly gain at 31%.

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During this period, the stock has appreciated by 137%. Compared to its all-time low of ₹236 per share in June 2022, the stock is currently trading 245% higher. Moreover, in February, the company achieved a significant milestone by reaching a record all-time high of ₹921 per share.

Record performance 

The company ended FY24 on a robust note, achieving a 69.3% year-over-year growth in operating revenue to ₹9,570.3 million and enhancing operating margins to 19.8% from 15.0% in the previous fiscal year.

The company's Profit after Tax surged by 2.1 times to ₹1,453.9 million in FY24, up from ₹684.0 million in the preceding year. It also doubled its new contract wins in FY2024 to ₹2,847.8 million, contributing to an annual recurring revenue of ₹10,232.6 million, according to the company's earnings filing. 

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Amidst increasing industry demand for data-driven insights to enhance operational efficiencies and expedite decision-making, there is a projected rise in technology investments aimed at deploying user-friendly AI-driven solutions for optimising guest acquisition, enhancing retention rates, and maximising revenue. RateGain is strategically positioned to capitalise on this opportunity.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.