Buy this share of a leading travel company for a 47.5% hike in the long run: Edelweiss

About Easy Trip Planners:

The company is the second largest online travel agency or OTA in the country. Incorporated in 2008, the company began by focusing on the business-to-business and customer (B2B2C) distribution channel and even to promote the offline travel market, travel agents have access to the company’s website to book tickets. aircraft interiors. In addition, the company has started to supply the B2C and B2E segment, thus having a diverse customer base as well as an extensive distribution network.

No Convenience Fee Strategy-

No Convenience Fee Strategy-

This turned out to be a big tailwind for the company, leading it to become the dominant player in the domestic airline ticketing segment. Easy Trip’s No Convenience Fee USP has been a game-changer for the business and it is the only profitable business among the nation’s major OTAs. “While EASEMYTR has the largest agent network in the Indian OTA industry, it also ranks second in terms of airfare volume and third in terms of gross booking revenue (GBR ) and number of registered customers, ”the report says.

Key points to remember

Key points to remember

– In fiscal year 18-20, the online travel agency recorded the strongest growth in air ticket reservation volume as well as gross air ticket reservation revenue among the major OTAs in the country.

– In the B2C distribution network, the company recorded a repeat transaction rate of 85.95%.

– The company during the review period generated a strong net

CA / EBITDA / TAC 19% / 87% / 91% CAGR.

– The company is focusing both on the inorganic path and on acquisitions ((Traviate & Spree Hospitality) to enter new segments.

Outlook and assessment:

Outlook and assessment:

Without external funding since its launch, Easy Trip has built its business the traditional way – pay-as-you-go, generating revenue and diligently managing costs. 41x / 1.1x Benefits FY23E and EV / GBR FY23E. For fast growing companies whose earnings trajectory has not stabilized, we consider a valuation based on DCF. Thus, we evaluated EASEMYTR on the DCF calculations and initiated a hedge on it with a “BUY” rating and target price of INR 733, ”adds the brokerage.

Disclaimer:

Disclaimer:

The stocks were selected in the Edelweiss brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.


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