Easy Trip Planners stock spikes for 3rd consecutive day, gains over 5.5%; what’s behind the rally?
Maintaining their upward trajectory for the third trading session, shares of Easy Trip Planners, one of India’s largest online tech travel platforms, jumped another 5.65% in today’s trade, reaching ₹45.80 apiece. Today’s spike in the stock has resulted in a cumulative gain of 12.10% in three sessions.
Following the controversial remarks made by three Maldivian ministers against Prime Minister Narendra Modi and India, the company on Monday announced the suspension of all flight bookings to the island nation on its website, claiming that ‘nationalism’ is greater than any ‘personal interest’.
Nonetheless, analysts said that the company’s decision to suspend bookings to the Maldives is expected to have a limited financial impact. Further, the stock also reacted positively following the company’s board approval of fundraise of up to ₹1,000 crore on January 02.
The funds will be raised through the combination of equity shares and warrants convertible into an equivalent number of equity shares of the company to be issued on a preferential basis, according to the company’s exchange filing.
Also Read: MakeMyTrip observes 3400% increase in Lakshadweep searches amid Maldives row
EaseMyTrip Insurance Broker business
Meanwhile, the company ventured into the insurance broker business by incorporating a new subsidiary named EaseMyTrip Insurance Broker. The new entity will help the travel services provider add a new revenue vertical and enhance its business for insurance brokers and related services.
Easy Trip Planners is a small-cap online travel platform with a market capitalisation of over ₹8,115 crore. The company offers a comprehensive range of travel-related products and services catering to the needs of passengers travelling domestically as well as travelling to and from international destinations.
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After experiencing two consecutive years of positive performance in CY21 and CY22, the company’s shares witnessed a significant drop of 23.47% in CY23. They have bounced back in the current month, with a gain of 13.51% so far.
In terms of financials, the company reported a 69% YoY improvement in its consolidated net profit, reaching ₹47 crore in Q2FY24, while its revenue from operations surged to ₹142 crore, a 31.48% surge over Q2 FY23’s revenue of ₹108 crore.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 09 Jan 2024, 05:33 PM IST
