After muted debut, shares of this travel company are up 100% in a month

Easy Trip Planners is the second-largest Online Travel Agency (OTA) in India in terms of booking volume (9MFY21) and the third largest in terms of gross booking revenues
Shares of the recently listed Easy Trip Planners hit a new high of Rs 427, up 9 per cent on the BSE in intra-day trade on Thursday. In the past one month, the stock of the travel support services company has zoomed 127 per cent on anticipation that pent up demand will boost the travel and tourism segment post the ease of travel restrictions and vaccination drive carried out by the government. In comparison, the S&P BSE Sensex was up 5.4 per cent during the same period.

With the past one month's outperformance, the stock price of Easy Trip Planners has bounced back 189 per cent from its 52-week low of Rs 147.50 touched on April 19, 2021, in intra-day trade. The company had hit a 52-week high of Rs 233.15 during the intra-day session of its stock market debut on March 19, 2021. The company had raised Rs 510 crore through an initial public offer (IPO) with an issue price of Rs 187 per share.

Shares of Easy Trip Planners had a muted debut compared to the oversubscription seen during the IPO. On the first day of listing, it ended at Rs 206.50, 10 per cent above its IPO price. The online travel firm’s Rs 510-crore issue was subscribed 159 times (anchor portion excluded).

The company operates the EaseMyTrip.com website. It offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets (94 per cent of revenues), hotels and holiday packages (5 per cent of revenues), rail tickets, bus tickets and taxis, as well as, ancillary value-added services such as travel insurance, visa processing and tickets for activities and attractions.

On a clarification of movement in stock price, Easy Trip Planners on May 26 said the movement in the price or volume of security is due to market and economic conditions and is purely market-driven.

Easy Trip Planners is the second-largest Online Travel Agency (OTA) in India in terms of booking volume (9MFY21) and the third largest in terms of gross booking revenues. It is the only profitable OTA in India over the last three years, in terms of net profit margin.

The board of directors of the company is scheduled to meet on June 15, 2021 to consider and approve the audited financial results of the company for the quarter and financial year ended on March 31, 2021.

Meanwhile, on April 30, in an investor presentation, Easy Trip Planners said that is anticipating pent up demand to boost the travel and tourism segment post the ease of travel restrictions and vaccination drive carried out by the government. With minimal finance cost and low depreciation and capex going forward, we anticipate the majority of earnings before interest, taxes, depreciation, and amortisation (EBITDA) flowing down to profit after tax (PAT), the company said.

“Online travel is one of the worst-hit sectors due to the outbreak of the Covid-19 pandemic, with recovery likely to be “U-shaped” at best. Domestic travel in India is set to recover faster relative to international travel (including hotels and holiday packages). For domestic travel, the industry should reach pre-Covid volumes by early 2021,” Easy Trip Planners said. The company expects the online travel market in India to double over the next five years to reach $31 billion FY25, growing at 14 per cent CAGR from FY20 levels.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel