LIC-backed stock to open 5-star hotel in Ayodhya; aims to record PBT of Rs 250 crore in FY24!

Of particular interest, the esteemed Life Insurance Corporation of India (LIC) holds a notable 2.17 per cent stake in the company, equivalent to 38,439,912 shares.

In an intriguing development, Easy Trip Planners Ltd (EaseMyTrip) revealed today, on February 11, 2024, that its Board of Directors, in a meeting convened for this purpose, has given careful consideration to and provisionally sanctioned the proposal for the establishment of a prestigious 5-star hotel in Ayodhya, strategically located within 1-KM radius from the revered Shree Ram Mandir. This ambitious venture entails an investment of up to Rs 100 crore in Jeewani Hospitality Private Limited, a company currently in the process of incorporation, thereby securing 50 per cent of the aggregate share capital of the aforementioned entity on a fully diluted basis through a swap mechanism, involving the issuance of the Company's own equity shares on a preferential basis. It is imperative to note that this preliminary decision is contingent upon final approval from the Board of the Company, alongside requisite regulatory and/or shareholders' endorsements, as appropriate.

Of particular interest, the esteemed Life Insurance Corporation of India (LIC) holds a notable 2.17 per cent stake in the company, equivalent to 38,439,912 shares.

Turning our attention to the financial performance, the stock has exhibited commendable growth, with an impressive 22.54 per cent surge over the past three months, coupled with a notable 11.57 per cent upswing in the preceding month alone. Undoubtedly, such a trajectory underscores investor confidence and market optimism.

Further illuminating the company's trajectory, the primary objective remains steadfast: to attain a profit before tax of Rs 250 crores for the fiscal year 2024. Encouragingly, the company remains on a trajectory to realize this ambitious milestone.

In tandem with its strategic initiatives, online travel aggregator (OTA) EaseMyTrip has reported a robust year-on-year growth of 9.5 per cent in net profit, amounting to Rs 45.6 crore in the December quarter of FY24, as compared to Rs 41.69 crore during the corresponding period in the preceding year. This noteworthy performance can be attributed to the sustained momentum in travel demand, underscoring the resilience and adaptability of the organization in navigating dynamic market conditions.

Disclaimer: The article is for informational purposes only and not investment advice.