Shares of Easy Trip Planners, one of India’s largest online travel platforms, tumbled 15.3% in intraday trade, dropping below Rs 35 to Rs 34.70 apiece, hitting a 31-month low. The sharp decline followed a block deal involving 17.6 crore shares, or 9.9% of the company’s total equity, changing hands.
Promoter Stake Sale Sparks Decline
The fall in stock price comes after reports on September 24 from CNBC-TV18, citing sources, that promoter Nishant Pitti is expected to sell up to 8.5% of his stake through block deals, with an estimated block size of Rs 622 crore. As of the June quarter, the company’s promoters held a 64.3% stake, with Nishant Pitti being the largest promoter, holding 28.13%.
Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) each owned 2.6%, while the general public held the remaining 30.5%.
Strategic Expansions and Acquisitions
Easy Trip Planners is aggressively expanding its portfolio through acquisitions and new ventures. Recently, it acquired a 49% stake in Pflege Home Healthcare and a 30% stake in Rollins International to strengthen its position in the medical tourism sector.
The company has also entered the electric vehicle market by launching a subsidiary, Easy Green Mobility, focused on electric bus manufacturing. Over the next two to three years, it aims to manufacture 4,000 to 5,000 electric buses, which will be used by its subsidiary YoloBus, an intercity bus ticketing platform. Easy Trip has allocated Rs 2 billion for research and development, product innovation, and setting up a manufacturing facility.
Company Profile and Market Position
Recognized as one of India’s top online travel aggregators, Easy Trip offers airline, train, and bus ticketing services, along with hotel reservations. It competes with industry leaders such as MakeMyTrip and Yatra Online. The air travel segment contributes approximately 95% of the company’s revenue, with hotel bookings accounting for just over 4%.
Financial Performance
The company reported a strong performance in the June quarter, with revenue from operations increasing by 23.0% year-on-year to Rs 1,526 million. Profit Before Tax surged 34.5% to Rs 471.8 million. The hotel and holiday package segment saw a 116.6% year-over-year growth in gross booking revenue, amounting to Rs 210.7 million.
Additionally, revenue from its Dubai operations grew by 13% YoY, further bolstering the company’s overall growth trajectory.
Stock Performance in Last Year
In terms of stock performance, Easy Trip Planners shares have delivered negative returns across multiple time frames. Over the past month, the stock has declined by 13.21%. Over the last six months, the stock has faced even greater pressure, posting negative returns of 18.93%, indicating a strong downtrend.
Year-to-date, Easy Trip Planners shares have plunged by 12.09%, reinforcing the stock’s negative momentum in the current fiscal year. Looking at the broader picture, the stock has delivered a negative return of over 15.14% in the last twelve months.
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