Yatra Online (YTRA), mcap=$148m, price $2.36 vs $1.50

Pitch:
India’s second-largest OTA at 4x fwd EBITDA.
– Trades at 20x discount to its India-listed peer.
– Activist recently got a board seat aiming for the secondary listing in India (much higher valuations) and/or an eventual sale of the company.
– Strong competitive position.
– Expected to be EBITDA and cashflow positive by the end of 2022.
– Was to be acquired by EBIX in 2019 at $4.9/share vs $1.5 today – canceled mainly due to covid.
– A number of potential suitors.

Valuation:
– Trades at 0.7x fwd revenue and 4x EBITDA.
– Peers are at much higher multiples.
– MMYT (#1 in India, US listing) at 3.5x revenue and 44x EBITDA.
– EMT (#3 in India, India listing) at 18x revenue and 35x EBITDA.

Exp. gain: +100-200% upside in next 1-2 years. Potentially higher in acquisition scenario.

Full YTRA write-up (free guest account required): https://www.valueinvestorsclub.com/idea/YATRA_ONLINE_INC/2229677373

Published on: July 9, 2022  •  Published by:
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