Multibagger Small-Cap Stock: Company Announces Significant Business Updates, Highlighting Outstanding Q3FY24 Performance of Its Indian Subsidiary EbixCash Limited’s Travel Division
The stock gave multibagger returns of 765 per cent in just 1 year and a whopping 18,000 per cent in 5 years.
Eraaya Lifespaces Limited (ELL) shared exceptional updates on the Q3FY24 performance of its Indian subsidiary, EbixCash Limited. The Travel Division of EbixCash, led by Ebix Travels Pvt Ltd. (ETPL), delivered remarkable results, emphasizing the company’s robust operational growth and market presence. Key financial highlights include a Gross Merchandise Value (GMV) of Rs 1,003 crore, net revenue of RS 111 crore and a healthy EBITDA of Rs 7.5 crore. These figures reflect the division's strategic focus on high-margin segments like corporate travel, luxury trains, and regional online travel services.
Among its key business segments, the Mercury division stood out as a top contributor, generating Rs 58.53 crore in revenue with an EBITDA of Rs 2.37 crore. This segment encompasses corporate travel, MICE (Meetings, Incentives, Conferences, and Exhibitions), luxury trains, and Swiss travel. Notably, the luxury train operations, including the iconic Deccan Odyssey, brought in Rs 11.23 crore, although seasonality slightly impacted margins. Meanwhile, the Swiss Travel Bureau GmbH continued to cater to affluent American clients, adding Rs 5.37 crore in revenue. These results underscored the division's ability to adapt and capitalize on lucrative travel niches.
The online travel agency via.com showcased mixed regional performance, with strong profitability from markets like Indonesia and the Philippines, which collectively generated Rs 8.68 crore in EBITDA. Singapore's operations are poised to turn profitable in the next quarter, strengthening EbixCash's ASEAN presence. Collectively, India, the Philippines, and Indonesia contributed a staggering Rs 811.74 crore in GMV, reflecting the company’s dominant regional footprint. Additionally, nine new corporate clients were onboarded, expected to generate Rs 58 crore in annualized revenue, while contract renewals with five major corporate clients are nearing completion.
EbixCash’s rail division achieved new milestones, serving a record 1,447 passengers in luxury train bookings—the highest since the COVID-19 pandemic. The MICE division also excelled, managing over 30 groups and more than 6,000 passengers, with industry-leading margins of 8.48 per cent. These achievements underscore EbixCash’s ability to meet and exceed client expectations across various segments. The strong performance across diverse business lines highlights Eraaya Lifespaces Limited's commitment to operational excellence and its position as a market leader in the travel and hospitality industry.
On Thursday, shares of Eraaya Lifespaces Limited hit a 5 per cent lower circuit to Rs 137.25 per share from its previous closing of Rs 144.45 per share. The stock’s 52-week high is Rs 316.90 per share and its 52-week low is Rs 16.24 per share. The stock gave multibagger returns of 745 per cent from a 52-week low of Rs 16.24 per share.
Earlier, Eraaya Lifespaces Limited announced that its subsidiary, EbixCash, secured a five-year, Rs 335 million contract with KSRTC to provide an Automatic Fare Collection System (AFCS) on 10,000 devices for their 8,000-bus fleet. EbixCash also won a Rs 1,000 million contract to operate and manage ITI Limited's Data Center, expanding its presence in the data center management market.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
About the Company
Eraaya Lifespaces Limited, a leading lifestyle and hospitality company renowned for its luxurious and culturally rich experiences, is embarking on a strategic expansion. Building on its success in creating unforgettable journeys, Eraaya seeks to diversify its portfolio through mergers and acquisitions. This ambition was recently realized with the acquisition of Ebix Inc. USA and its global subsidiaries in June 2024. This significant acquisition, valued at USD 361 Million, marks a pivotal moment for Eraaya as it ventures into new business domains, driving innovation, and creating value for all stakeholders while navigating the dynamic and evolving market landscape.
Eraaya Lifespaces Limited has declared a 10:1 stock split. This means that each existing share with a face value of Rs 10 will be divided into ten new shares, each with a face value of Re 1. The ex-date for the stock split was Friday, December 06, 2024. In October 2024, FIIs bought 5,24,093 shares and increased their stake to 26.31 per cent compared to a 24.21 per cent stake in September 2024.
The company has a market capitalization of Rs 2,598 crore and a 500 per cent 3-year stock price CAGR. The stock gave multibagger returns of 765 per cent in just 1 year and a whopping 18,000 per cent in 5 years. As of October 2024, the company's promoters own 35.17 per cent stake, FIIs own 26.31 per cent, DIIs own 1.84 per cent and the rest 36.69 per cent stake is owned by the public.
Disclaimer: The article is for informational purposes only and not investment advice.