BackMultibagger stock gets 'Buy' tag from ICICI Securities after bonus shares issue
The brokerage has maintained its buy recommendation on the multibagger stock and revised target price
PremiumEasy Trip Planners made an announcement of bonus shares on January 12, 2022. The ratio was one bonus share for every one equity shares, 1:1. The record date for the same is March 2, 2022 while the ex-date for the same was February 28, 2021 (March 1 being a holiday). The company said its bonus shares will be issued out of free reserves created out of profits of the company available as at March 31, 2021.
“Consequently, Easy Trip Planners share price, as per previous closing price, has adjusted to ₹274 per share from ₹549 per share. Accordingly, our target price stands revised to ₹335/share. We maintain our Buy recommendation on the stock," said domestic brokerage house ICICI Securities.
Online travel market in India is set to double over the next five years, lean cost model and no convenience fee strategy remain key pillars supporting such rapid, profitable growth, which could act as key triggers for future price performance.
“Now, with airlines allowed to operate with their full capacity, we expect further traction in the company’s revenues and profitability, going ahead. 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," the brokerage note added.
Easy Trip Planners or EaseMyTrip.com (EMT) is an online travel portal in India. The company 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. Airline tickets accounted for 94.0% of revenues (pre-Covid levels) while hotels and other services contributed 5.4% and 0.6% of revenues, respectively.
Shares of EasyMyTrip shares have given multibagger return since its listing in March 2021. Easy Trip Planners IPO was open between March 8 and March 10 and the shares made stock market debut on March 19.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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