Dolat Capital Revises RateGain To 'Reduce' On Risk Involved In Sojern Acquisition Integration

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Dolat Capital Report

RateGain Travel Technologies Ltd.’s acquisition of Sojern underscores its ambition to scale its MarTech and AI-led hospitality platform while broadening its customer base and enhancing its value proposition.

Management remains confident of driving revenue synergies through cross-selling opportunities across Sojern’s 13,000+ clients.

However, given Sojern’s comparatively lower margin profile, potential interest cost impact, and the time required for synergy realization, we expect near-term profitability to remain moderated, with valuation upside dependent on execution and integration progress.

We expect a Revenue CAGR of 28% (from 12% earlier) over FY25-FY30, with average operating profit margin of 21% (from 23% earlier) over FY26E-FY40E.

Factoring all this, we revise rating to ‘Reduce’ with a DCF-based revised target price of Rs 750 per share (implies ~38x on FY27E Earnings).

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