 "EaseMyTrip stock up 3.5x since March listing as travel sentiment rebounds")
Easy Trip Planners, which operates online travel portal EaseMyTrip (EMT), has seen a 3.5x surge in its stock price since its March listing, driven by a rebound in travel sentiment.
The thirteen-year-old OTA which has been profitable since its inception went public with a Rs 510 crore initial public offer in March. On Friday, its stock closed at Rs 663.15 and its market cap touched Rs 7,204 core. In intra-day trades, however, the stock scaled a new high of Rs 717.50 on the BSE, translating into a market cap of Rs 7,795 crore or $1.06 billion (73.54 to a dollar). The company’s Friday closing price was 3.5 times its listing price of Rs 187.
Easy Trip Planners has been amongst the top performers amongst the listed travel companies with a 70 per cent rise in its stock price in the past three months. Only Indian Railway and Catering Tourism Corporation performed better in this period with 88.4 per cent gain in its stock price. While Thomas Cook stock has remained flat, Indian Tourism Development stock has declined in the past three months.
On Thursday, the company announced its international foray. The company will launch localized search engines in the Philippines, Thailand and the US.
“We are among very few consumer internet businesses in the world, who have become unicorns while remaining bootstrapped. Even during the IPO, the company didn’t take any money. So EMT is still bootstrapped,” company’s CEO and co-founder Nishant Pitti tweeted.
EMT is known to run a tight ship with low employee and marketing costs and high level of automation. In FY 2021 the company reported a net profit of Rs 61.4 crore as against Rs 33 crore a year earlier. In the first quarter FY 2022 which was impacted by the second wave of pandemic it posted a net profit of Rs 15.4 crore. Profit grew six times on a year on year basis due to higher margins and commissions.
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