TBO Tek, Le Travenues, Yatra Online shares surge up to 10%; here's why 

Shares of online travel companies TBO Tek, Le Travenues Technology and Yatra Online rose up to 10% on Monday amid a rally in the broader market due to the US-Iran peace deal. Another factor, which supported sentiment in these stocks was brokerage Motilal Oswal turning bullish on the sector, citing strong growth prospects and improving profitability.

Subsequently, shares of TBO Tek rose 10% to Rs 1498.65 today against the previous close of Rs 1361.20 on BSE. Market cap of the tour, travel related services firm rose to Rs 15,614 crore. 

The brokerage reaffirmed its 'Buy' recommendation on TBO Tek and initiated coverage on Ixigo and Yatra Online with positive ratings.

The brokerage maintained its target price of Rs 1,765 per share and valued TBO Tek at 38 times its estimated FY28 earnings. 
It expects the travel platform to report a gross transaction value (GTV) CAGR of 23% between FY26 and FY28. Operating margins are expected to improve to more than 16% by FY28 from around 14% currently, which could lead to an earnings-per-share (EPS) CAGR of 43% over the same period.

Shares of Le Travenues Technology or Ixigo climbed 6.16% to Rs 189.30 against the previous close of Rs 178.30. Market cap of the firm rose to Rs 7957 crore. 

Motilal Oswal initiated coverage with a 'Buy' rating on Ixigo with a target price of Rs 217. The brokerage sees strong growth across the company's core travel segments, projecting GTV CAGRs of 22% in flights, 17% in trains and 34% in buses between FY26 and FY28.

Yatra Online shares gained 8.48% to Rs 111.85 against the previous close of Rs 103.10. Market cap of the firm rose to Rs 1687.30 crore. 

Motilal Oswal began coverage on Yatra Online, with a 'Buy' recommendation and a target price of Rs 125.

The brokerage expects the company to deliver earnings growth at a compound annual growth rate (CAGR) of 41% between FY26 and FY28, driven primarily by sustained expansion in its hotels and holiday packages segments. These businesses are projected to account for a growing share of overall revenue in the coming years.

According to the brokerage, India's online travel industry is poised for robust growth, supported by rising demand for travel, increasing adoption of digital booking platforms, and a steady expansion in both leisure and corporate travel across the country.