Shares of online travel company, Easy Trip Planners, have given robust returns to its investors in the last one year. The stock has risen from ₹100 to ₹444, surging over 340 percent in this period.
The smallcap stock, which has a market cap of ₹8,854 crore, hit its 52-week high of ₹444.30 on April 11, 2021.
Easy Trip Planners Limited operates as an online travel agency in India. It provides a range of travel-related products and services, including airline tickets, hotel and holiday packages, rail tickets, bus tickets, and taxi booking, as well as value-added services, such as travel insurance, visa processing, and tickets for activities and attractions. The company was incorporated in 2008 and is based in New Delhi, India. It operates EaseMyTrip.com.
The firm made its debut on the bourses on March 2021. It was listed at ₹206, a 10 percent premium against its issue price of ₹187 per share on the BSE.
For the December quarter, the company reported an 83 percent year-on-year rise in its consolidated net profit at ₹40 crore versus ₹22 crore in the year-ago period. Its net sales for the period came in at ₹86.5 crore, up 142 percent from ₹36 crore in the December 2020 quarter.
For the first nine months ended December 2021 (9MFY22), Easy Trip Planners had posted a 167 percent year-on-year (YoY) jump in consolidated net profit at ₹825 crore. The company continues to remain extremely optimistic about the coming quarter as the company will continue to strengthen its lean and efficient infrastructure.
"With minimal finance cost and low depreciation and capex going forward, we anticipate the majority of earnings before interest, taxes, depreciation, and amortization (EBITDA) flowing down to profit after tax (PAT)," the company said in a statement.
The travel industry has been hit very hard due to the pandemic. However, though some recovery was starting to be seen but the surging fuel prices and inflation has once again dampened the sentiment. But as the holiday season nears, the demand is once again seen reviving which is positive for the firm, as per experts.
Brokerage house ICICI Securities noted that Easy Trip is the only profitable company in the online travel portal in India. Now, with airlines allowed to operate at their full capacity, ICICI expects further traction in the company’s revenues and profitability, going ahead.
According to a February 2021 Crisil report, EaseMyTrip is India’s second-largest online travel platform in terms of air ticket bookings. The website is one of the fastest-growing internet companies, growing at nearly 50 percent CAGR.
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