Easy Trip Planners hits an all-time high on heavy flights; stock up to 20% in 2 days
Shares of Easy Trip Planners hit an all-time high of Rs 415 and were up 10% on BSE during Tuesday’s intraday trading on strong volumes. Shares of the travel assistance services company have jumped 20% in the past two trading days on hopes of posting strong profits. Company management is extremely optimistic about the strong pent-up demand in the travel industry.
At 12:49 p.m.; the stock rose 8% to Rs 407.30, against a 0.38% rise in the S&P BSE Sensex. Over-the-counter trading volumes more than doubled with a combined total of 6.75 million equity shares changing hands on the NSE and BSE. Over the past month, the stock has climbed 50%, compared to an 11% rise for the S&P BSE Sensex.
The Company operates the EaseMyTrip.com website. According to a Crisil report from February 2021, EaseMyTrip is India’s second largest online travel platform in terms of flight ticket bookings. The website is one of the fastest growing Internet companies, with a CAGR of nearly 50%.
EaseMyTrip offers “end-to-end” travel solutions including air tickets, hotels, train and bus tickets, vacation packages as well as ancillary value-added services. The company has offices in Indian cities including Noida, Bangalore and Mumbai. International offices (as subsidiaries) are in the Philippines, Singapore, Thailand, UAE, UK and USA.
Over the past two days, Easy Trip Planners share price has rebounded 463% from its 52-week low of Rs 73.75 reached on April 19, 2021. Earlier, the company raised 510 crore of rupees through an initial public offering (IPO) with an issue price of Rs 93.50 per share. Later, the company issued free shares in a ratio of 1:1, i.e. one additional share or each share held in the company.
For the first nine months ended December 2021 (9MFY22), Easy Trip Planners had recorded a 167% year-on-year (YoY) increase in consolidated net profit to Rs 825 crore. Adjusted revenue increased by 208% year-on-year to Rs 3,020 crore. The company remains extremely optimistic about the coming quarter as it continues to build its lean and efficient infrastructure.
Easy Trip Planners predicts an increase in demand to boost the travel and tourism segment after the easing of travel restrictions. “With minimal finance cost and low depreciation and capex going forward, we expect the majority of earnings before interest, tax, depreciation, and amortization (EBITDA) to flow into earnings after tax (PAT),” the company said. company in a press release.
Management also suggested that online travel was one of the hardest hit sectors due to the pandemic. “With a recovery likely to be U-shaped at best, domestic travel in India is expected to recover faster compared to international travel (including hotels and vacation packages). For domestic travel, the industry is expected to achieve pre-Covid volumes by early 2021,” the company adds.