EasyTrip Planners : Strong Revenue Growth
EasyTrip Planners : Strong Revenue Growth
Call & Research Report by Anand Rathi Research
Report Date: 17 November 2021
CMP Rs. 517, Target Rs. 625
Target Period : 2 Quarters
The company reported strong revenue growth from operations of 339.3% year-on-year at Rs.437 million. The gross bookings stood at 8950 million which was 164% up on year-on-year basis and 151% up on quarter-on-quarter basis. This growth also represents a strong recovery of India’s travel sector that was severely affected due to pandemic. The management is confident to achieve sustainable business growth in the coming quarters as well.
- On profitability front, the EBITDA from operations for the quarter improved year-on-year to Rs.208 million with an operating margin of 47.6%. The company reported Profit after Tax of Rs.271 million, a growth of 340.2% year-on-year with a net margin of 62.1% translating into EPS of Rs.2.5 per share for the quarter.
- The company is going to acquire a company called as Traviate; this is going to be the first acquisition which is a 100% technology driven platform. Traviate lists more than 1.2 million hotels and has enabled more than 200,000 transactions till date. This acquisition will add a new revenue stream and enable EaseMyTrip to do B2B hotel and holiday transactions. The company has also expanded its wings internationally to countries like Philippines, Thailand, and USA. The company anticipate a huge pent-up demand across the globe and these expansions will aid in rooting the Ground in the international markets.
- The company is doing multiple tie-ups with banks to cross-sell each other’s products and leverage brand strength for both the parties. It is also engaging with multiple banks and e-wallet companies to provide additional benefits to customers for engaging with them and making them stick to its portal.
- The company continues to focus on increasing its revenue and market share alongside its equal efforts are distributed on operational efficiency and cost management. The company is focused to do its best in creating a lean cost model and remain profitable and increase profits on consistent basis.
- We continue to remain positive on the company due to company’s strong presence in the growing online ticketing market in India, lean business model, strong management, strong balance sheet along with profitable growth outlook. We maintain our BUY rating on the stock with a revised target price of Rs.625 per share.
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