With the business potentially at an important milestone, we thought we'd take a closer look at Yatra Online, Inc.'s (NASDAQ:YTRA) future prospects. Yatra Online, Inc. operates as an online travel company in India and internationally. On 31 March 2022, the US$176m market-cap company posted a loss of ₹478m for its most recent financial year. The most pressing concern for investors is Yatra Online's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
According to the 3 industry analysts covering Yatra Online, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of ₹283m in 2023. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 126% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Yatra Online's growth isn’t the focus of this broad overview, but, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Yatra Online is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Yatra Online's case is 40%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
There are key fundamentals of Yatra Online which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Yatra Online, take a look at Yatra Online's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
Valuation: What is Yatra Online worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Yatra Online is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Yatra Online’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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