Yatra Online shares bounce back after tepid debut. Should you buy, sell or hold?
Yatra Online made a disappointing debut on the exchanges on Thursday as its shares got listed at a significant discount.
Shares of the online travel company listed on NSE at Rs 127, a discount of 10.2% to the issue price of Rs 142, while on BSE, the stock debuted at Rs 130, a discount of 8.4%.
However, at 11.57 a.m., the stock was trading 5.3% higher at Rs 136.9 on BSE.
«As expected, the Yatra Online IPO saw a tepid listing today and is trading close to the issuance price of Rs 142 per share. However, we believe that the strong growth in the tourism industry will help the share of the online travel market (OTA) to increase at a faster pace than captive players,» Prathamesh Masdekar, Research Analyst at StoxBox, said.
«With a technology-driven business which would see benefits of operating leverage coming into play with a larger volume of business, we expect an improvement in the company's profitability going forward.
We, therefore, remain positive on the company and recommend investors who have received allotment to hold shares from a medium to long-term perspective,» Prathamesh added.
Yatra Online offers a comprehensive range of travel and travel-related products and services catering to the needs of passengers travelling domestically, as well as travelling to and from international destinations.
The company provides customers with various tools and information that they need to research, plan, book and purchase travel products and services in India as well as outside India.
Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart, said, «The YOL's shares witnessed a negative listing. This is likely due to the company's high P/E valuation, its reliance on the airline ticketing business, and the competitive
