Online travel platform, Easy Trip Planners kicked off its two-day rally on Wednesday. Although the stock opened at a 52-week high on Dalal Street, it, however, corrected lower by over 5.5%. The stock rallied over 40% in the last two sessions. The Board of Directors of the Company today approved the allotment of equity shares under the Bonus Issue in the ratio of 3:1. Investors booked profits as the stock hit a one-year high.
Easy trip planners did business at around 12.09 pm 66.70 on the BSE, down 2.27%. But the stock has fallen at least 5.56% to hit a one-day low 64.45 per share on the exchange. It opened at a new 52-week high 70.25 each.
From November 21 to November 22, the stock climbed over 43% on D-Street. Notably, the stock went ex-bonus and ex-split on November 21.
In its regulatory filing on Wednesday, Easy Trip Planners announced that the board has approved the allotment of up to 130.37 crore equity shares, the face value of each of which is fully paid-up. Bonus Equity Shares — In the ratio of 3:1. Also, it added, the company will make necessary arrangements for crediting the bonus shares / dispatch of share certificates, as applicable, on or before December 08, 2022.
Easy Trip had fixed November 22 as the date for determining the eligible shareholders for both the bonus issue and stock split,
Its 3:1 ratio of bonus shares means that the company will issue three new equity shares at a face value of Re 1 for every existing share. Also, the company announced a stock split of existing shares of face value 2 into 2 equity shares of face value of Rs.1 each.
Shares of Easy Trip Planners have corrected on the stock exchanges after the bonus issue and stock split.
Besides this, a bulk deal was done in Easy Trip Planners on NSE by investors like Arham Shares Pvt Ltd, Graviton Research Capital, Prarthana Enterprises and Neeraj Rajinikanth Shah. These investors together sold shares of Easy Trip for crores of rupees 83.75 crores, while they bought shares in total of approx. 82.55 crores.
In a research note on November 21, ICICI Direct had a buy rating with a target price of EZ Trip when it became ex-bonus and ex-split 63 each. However, Easy Trip has already passed this price level.
During Q2FY23, Easy Trip Planners posted a net profit of Rs. compared to 28.2 crore 27.1 crore in the year-ago quarter. EaseMyTrip’s revenue from operations crosses all-time high 100 crores, supporting its impressive growth story as one of the fastest growing OTA players in India. Q2FY23 revenue came in 108.5 crores growing 91.5% annually.
Furthermore, the company continued to deliver strong growth, with gross booking revenue (GBR) growing by 121% year-on-year in Q2FY23 and 191% year-on-year in H1FY23. extended to GBR 1,977.7 crore from 895.1 crore in Q2FY22. GBR at for H1 FY23 3,641 crore is almost equal to the entire previous year’s GBR of Rs.3,716 crore.
The key triggers for future performance in Easy Trip shares as per ICICI Direct are:
– Gross Booking Revenue (GBR) for H1FY23 was 3,641 crore, which is equivalent to GBR for the entire FY22. With the complete resumption coupled with the company’s aggressive advertising campaign to gain market share, the stock brokerage expects GBR to grow at a CAGR of 41.2% during FY 2022-25E.
– Lean cost model and no convenience fee strategy remain the key pillars supporting such fast, profitable growth. It also drives customer engagement with a healthy repeat transaction rate of ~86% in the B2C channel
– International expansion into countries such as the UAE, Philippines, Thailand and the US to help drive further revenue growth
– Higher-margin segments such as hotels (Treviat – B2B technology platform), Spree Hospitality – hospitality management company and bus booking segment (YOLO – intercity mobility platform) will further benefit.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint.
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