Easy Trip Planners shares jump 16%, takes 2-day rally to 39%. Here's why

Shares of Easy Trip Planners climbed nearly 16 per cent in Tuesday's trade, in addition to 20 per cent in the previous session, as the stock went going ex-split and ex-bonus. Following the corporate actions, the scrip also witnessed over a dozen bulk deals on NSE on Monday.

A meeting of the board of directors of the company is scheduled to be held on Wednesday, through video conferencing, to consider and approve the allotment of bonus equity shares.

The stock rose 15.88 per cent to hit a high of Rs 66.40 on NSE, taking its  two-day rise to 39 per cent. The scrip went ex-split from face value of Rs 2 to Re 1 each. It also turned ex-bonus in the 3:1 ratio. ICICIdirect has revised its target price for the stock to Rs  63 per share.

"Gross booking revenue (GBR) for H1FY23 was at Rs 3,641 crore, which is equivalent to GBR for full year FY22. With full resumption along with the company’s aggressive advertisement campaign to gain the market share, we expect GBR to grow at 41.2 per cent CAGR during FY22-25E," ICICIdirect said.

ICICIdirect said a lean cost model and no convenience fee strategy remain key pillars supporting such rapid, profitable growth. This has also led to stickiness by customers with healthy repeat transaction rate of 86 per cent in the B2C channel, it said.

"International expansion into the countries like UAE, Philippines, Thailand, and US to help boost revenues, going forward. Further benefits would accrue from high margin segments like hotels (Traviate – B2B technology platform, Spree Hospitality – hospitality management company and bus booking segment (Yolo - intercity mobility platform)," it said.

Earlier on February 28, shares of Easy Trip Planners went ex-bonus in 1:1 ratio.  In a November 14 note, Edelweiss Wealth said Easy Trip Planners reported better-than-expected revenue in September quarter, even as margins were below its estimates on higher advertising expenses.

The company reported a standalone net profit of Rs 30.63 crore for the September quarter compared with Rs 27.28 crore in the year-ago quarter. Revenue for the company rose to Rs 104.32 crore from Rs 43.68 crore in the year-ago quarter.

The management claims to have gained market share in Q2FY23, it noted while adding that the robust pickup in air travel in domestic and international markets bodes well for the company.

"Moreover, the company is focusing on expanding its non-air verticals from FY23. It strategically pursued inorganic growth by acquiring innovative companies across diverse travel segments and by evolving into a complete travel ecosystem. Management guides to achieve GBR of Rs 6,500–7,000 crore in FY23, and expects to continue its strong growth momentum in the coming years with consistent profitability," it said.

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