Stock Tales - Easy Trip Planners - ICICI Direct

Easy Trip Planners or EaseMyTrip.com (EMT) is the fastest growing and only profitable company in the online travel portal in India. It was founded as a B2B2C portal in 2008, providing travel agents access to its website to book domestic travel airline tickets. Subsequently, the company diversified into the business to customer (B2C) distribution channel in 2011.

- The company now offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets and bus tickets

- As of FY20, airline tickets accounted for 94.0% of revenues while hotels and other services contributed 5.4% and 0.6% of revenues, respectively

Key triggers for future price performance

- Online travel market in India is set to double over the next five years to reach $31 billion in FY25E, growing at 14% CAGR from FY20 levels

- The key drivers of longer term growth of online travel are: (1) Increased adoption of internet platforms in under-penetrated segments such as hotels, international travel and bus, (2) elevated growth in underlying demand in air and hotel segments due to rising income levels and (3) deeper penetration of travel into lower tier towns

- Near-term triggers - In anticipation of a recovery post the second wave, the Ministry of Civil Aviation has also increased the load capacity of airlines to 65%, which should hopefully ramp up further as the demand situation improves. Similarly, more than 90% of chain hotels and over 80% of top independent hotels are now open for bookings

- Easy Trip Planners (EMT) is the fastest growing and profitable company in OTA space in India and is ranked second in the domestic air ticketing space

- "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% in the B2C channel

- Further benefits would accrue from segments like international air, hotels and bus booking over the next three to four years, which are high margin business but currently having online penetration below 20% levels

For details, click on the link below: Link to the report

Shares of Easy Trip Planners Limited was last trading in BSE at Rs. 475.95 as compared to the previous close of Rs. 482.1. The total number of shares traded during the day was 101067 in over 3550 trades.

The stock hit an intraday high of Rs. 494.95 and intraday low of 473. The net turnover during the day was Rs. 49019464.

Source : Equity Bulls

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