Subscribe to Easy Trip Planners: Anand Rathi

Anand Rathi has come out with its report on Easy Trip Planners. The research firm has recommended to ''Subscribe'' the ipo in its research report as on March 06, 2021.

Broker Research

March 08, 2021 / 01:59 PM IST

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Anand Rathi IPO report on Easy Trip Planners

Easy Trip Planners Ltd. is ranked second among the Key Online Travel Agencies in India in terms of booking volume in the nine months ended December 31, 2020 and third among Key Online Travel Agencies in India in terms of gross booking revenues in Fiscal 2020. The company is the only profitable online travel agency among Key Online Travel Agencies in India in Fiscals 2018, 2019 and 2020. The company had the highest CAGR from Fiscal 2018 to Fiscal 2020 in terms of gross booking revenue and operating revenues among the Key Online Travel Agencies in India. It’s Gross Booking Revenues increased by 51.04% from ₹ 19,450.63 million in Fiscal 2018 to ₹ 29,377.75 million in Fiscal 2019, and by 43.13% from ₹ 29,377.75 million in Fiscal 2019 to ₹ 42,047.30 million in Fiscal 2020. It’s Gross Booking Revenues amounted to ₹ 12,207.57 million in the nine months ended December 31, 2020. It’s market share in the total Indian online travel agency industry in terms of gross booking revenues and gross booking revenues for airline ticketing segment was approximately 4.6%, and 5.5% to 6.5%, respectively, in Fiscal 2020.

Valuation and Outlook

At the upper end of the IPO price band, it is offered at 58.62x its FY20 earnings, with a market cap of Rs. 2032 crores. There are no listed entities in India whose business portfolio is comparable with that of its business. Given the company’s strong operating and financial performance in a highly competitive and growing industry; including strong margins, RoNW of 32.58% in FY20, strong balance sheet and management - we give this IPO a "Subscribe" rating.

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