Easy Trip Planners share price has doubled since IPO: What lies ahead now?

EMT’s competitor IXIGO’s IPO is due in the coming days. IXIGO has already got a pre IPO placement at aound Rs 6000 crore valuation

Easy Trip Planners (EMT), the second-largest travel portal in India, was listed on Indian bourses seven months back. Since then the shares price has more than doubled. Nevertheless, it has fallen a bit in the last one month. Will it reverse the trend going ahead? 

In the coming quarters with the revival of the travel sector as well as the hospitality sector, the company is going to definitely benefit. As per industry reports, the air-ticket market is roughly Rs 80,000 crore industry, which itself is poised to grow at 15 per cent per annum for the next 4-5 years, as various new airports are opening. Furthermore, the online travel market in India is expected to double over the next five years to reach USD 31 billion FY25, growing at 14 per cent CAGR from FY20 levels. EMT will be one of the beneficiaries of such growth in the industry.   

EMT is one of the very few e-comm portals in the world, who bootstrapped itself till IPO. As per the management report, in the last 13 years of existence, EMT never raised capital from any external source. The company kept on growing market-share via profits and internal accruals. Before listing, in its entire existence, the company has been profitable year-on-year basis. This is due to its highly efficient cost structure. the company has been able to offer customers air tickets at cheaper rates and successful word-of-mouth promotion.  

EMT’s competitor IXIGO’s IPO is due in the coming days. An interesting point to be noted is that IXIGO net profit of Rs 2.5 crore is for full-year, while EMT’s profits for the same duration was Rs 84 crore. However, IXIGO has already got a pre IPO placement at Rs 6000 crore valuation, whereas EMT’s market cap is Rs 5220 crore.  So we may see a reverse trend in the coming months.