RateGain Share Price: A day after RateGain’s explosive March quarter results, the stock had surged up to 12%. However, today, due to negative brokerage sentiment and weak guidance for fiscal year 2026, the shares dropped more than 10%. The company has set a revenue growth target of 6-8% for fiscal year 2026, significantly lower than the 12.5% growth recorded in fiscal year 2025. Based on this target, this fiscal year is expected to be the weakest since listing. Regarding margins, the company aims for a 15-17% margin this fiscal year, down from 21.6% in fiscal year 2025. This reduction is attributed to an aggressive investment strategy in the Asia-Pacific and Middle East regions.
Following the company’s guidance and the brokerage’s negative outlook, the shares plummeted sharply. Today, on the BSE, they closed down 10.14% at ₹472.00. Intraday, the stock slipped 10.58% to ₹469.70.
RateGain Shares: What is the brokerage firm’s outlook?
Brokerage firm PhillipCapital believes that due to slowing growth and a strong cash position of ₹1,290 crore, M&A activity may be seen in the near term. The company’s cash holdings represent about 68% of its balance sheet. However, the brokerage notes that the impact of any M&A on margins and earnings remains to be seen. Management is actively pursuing M&A opportunities.
Management expects the company’s organic growth and operating profit margin to be in the 19-22% range in the medium term. However, due to a weak environment for deals, sluggish growth, and margin pressures in the near term, earnings growth from fiscal year 2025 to fiscal year 2027 may remain in single digits. For these reasons, the brokerage downgraded the stock’s rating to Neutral and cut the target price by 26%, from ₹650 to ₹480.
RateGain Stock performed over the past year?
RateGain Tech’s shares were at a one-year high of ₹856.50 on July 30, 2024. The rally ended there, and over the next eight months, the stock fell 57.38%, reaching a one-year low of ₹365.00 on April 7, 2025. The stock was listed at ₹425 on the domestic market on December 17, 2021.
Disclaimer: This article is just for information. It should not be treated as investment advice in any way. Investing in the stock market is based on risk. Be sure to consult your financial advisor before investing in the stock market.
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