The shares of this smallcap company surged around 12 percent in Thursday’s trading session after announcing the launch of its new subsidiary and marking its entry into the electric bus manufacturing sector.
Price Movement:
With a market capitalization of Rs. 7,684 crores, the shares of Easy Trip Planners Ltd started Thursday’s trading session on a flatter note at Rs. 39.09 compared to its previous close of Rs. 38.89. During the trading session, the shares hit a high of Rs. 44.38, gaining around 12 percent and closed the day at Rs. 43 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced venturing into the electric bus manufacturing market through its new subsidiary, Easy Green Mobility. Easy Green Mobility will manufacture EV buses, with YoloBus (another subsidiary of EaseMyTrip) serving as its operating arm.
Furthermore, EaseMyTrip will be investing Rs. 200 crores for extensive R&D, Product Development, and setting up a manufacturing Plant over the span of 2-3 years.
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Additionally, EaseMyTrip has set ambitious targets, intending to operate over 2,000 electric buses across the country by the fiscal year 2027-28. This move aligns with the Indian government’s push for electric vehicles, supported by various schemes aimed at promoting green mobility.
Financials:
Looking at the company’s financial statements, the revenue decreased by around 6 percent from Rs. 164 crores during the March quarter to Rs. 153 crores in the June quarter. On the other hand, the net profits showcased a transition from a net loss of Rs. 15 crores to a net profit of Rs. 34 crores during the same period.
The company generates revenue from various segments, with 88.9 percent coming from flight bookings, 9.3 percent from hotel stays and holiday packages, and the remaining 1.8 percent from trains, buses, and other services.
Important Financial ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 17.05 percent and a return on capital employed (RoCE) of 34.06 percent for the period spanning FY23-24. Further, the net profit margin stood at 17.51 percent during the same period.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters own 64.30 percent of the shares, Foreign Institutional Investors (FIIs) hold 2.57 percent, Domestic Institutional Investors (DIIs) have 2.60 percent, and the Public holds the remaining 30.54 percent.
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Company Profile:
The company offers a comprehensive range of travel-related products and services under the flagship brand ”Ease My Trip”.
It also provides end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis as well as ancillary value-added services such as travel insurance, visa processing and tickets for activities and attractions.
Written By Vaibhav Patil
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