Three reasons why newly listed EaseMyTrip.com should be part of your portfolio!
The travel & tourism sector is one of the clear beneficiaries of such an emerging theme for the rest of the year while the market is already showing signs of revival in the sector.
Like last year, the market is again attempting to play the re-opening theme even as investors hustle to identify the stocks that may gain, owing to the re-opening of the economy fully.
The travel & tourism sector is one of the clear beneficiaries of such an emerging theme for the rest of the year while the market is already showing signs of revival in the sector. Otherwise, why would over 50 hotel stocks gain on an average of 25 per cent in just one month with as many as 38 stocks from the sector outperforming Sensex in the past one month when Sensex is up by nearly 7 per cent.
EaseMytTrip.com listed as Easy Trip Planners Ltd on bourses could be one of the clear winners in this theme that can be expected to play out in 2021. Following are the reasons as to why it should be a part of your long-term diversified portfolio:-
1. There is a huge demand for the share based on the response it received in the IPO. The stock was oversubscribed 159 times, which literally means that for 1,000 shares applied, one would have got only 6 shares. For sure, there is an appetite for the stock.
2. The stock is already up by over 58 per cent since it got listed in mid-March, showing momentum in the counter. Recent trade highlights the outperformance of the newly-listed stocks, which were oversubscribed several times. BSE IPO index is up by over 28 per cent on a YTD basis and is also, up by over 11 per cent in one month; thus outperforming Sensex. Quality IPOs post listing do tend to shine.
3. EaseMyTrip.com is one of the internet companies for which, investors are willing to pay a premium. It has a unique business model which is profitable, unlike its several peers that are yet to become profitable. This online ticket booking company can provide an excellent diversification to your portfolio.
The demand for the stock post IPO, aided by demand for the travel company stocks, good price momentum, and its ability to provide diversification benefits due to its unique business model are some of the positives for easemytrip.com, which can be considered by long-term investors.