Alpha | Easy Trip Planners Ltd. – Equity Research Desk

Easy Trip Planners Ltd. – Revenge Tourism Is On

Incorporated in 2008, Easy Trip Planners or Easemytrip.com (EMT) was founded as a B2B2C portal providing travel agents access to its website to book domestic travel airline tickets. Subsequently, the company diversified into the business-to-customer (B2C) distribution channel in 2011 by primarily focusing on the growing Indian middle-class population’s travel requirements.

• EMT now offers a comprehensive range of travel-related products and services for end-to-end travel solutions like online ticket bookings as well as ancillary value-added services such as travel insurance, visa processing, and tickets for activities and attractions.
• It provides its users with access to more than 400 international and domestic airlines, over 1 million hotels as well as train/bus tickets and taxi rentals for major cities in India.
• It has offices across various Indian cities, including Noida, Bengaluru, and Mumbai. Its international offices (as subsidiary companies) are in the Philippines, Singapore, Thailand, the UAE, the UK, and the USA.

Valuation 

Despite its expensive valuation, superior execution should stand the company in good stead. The sector in general and this company, in particular, stands to benefit from post pandemic revenge travel and travel as a key discretionary expense of the younger generation.  At CMP, the stock trades at 38x FY24E EPS. We recommend a BUY rating in the stock with the target price (TP) of Rs.450, 45x FY24E EPS.