Travel Stock Below Rs 40 Approves 10% Dividend, Buy Call Assigned; TP Rs 55

Board of small cap company Easy Trip Planners Ltd on Monday approved interim dividend at the rate of 10% on equity share capital of the company i.e. Rs 0.10/- per equity share of Re 1 each for the financial year 2023-24. Last trading price of Easy Trip Planners share on BSE is Rs 38.80 per share with intraday gain of 0.57%. Easy Trip Planners shares declined 28% year-to-date. Meanwhile, brokerage firm Bonanza has assigned buy call to Easy Trip Planners shares with target price of Rs 55 apiece. If you buy Easy Trip Planners shares now, you can fetch likely gain of 41.75%. Check details below:

Easy Trip Planners Stock Performance & Return: The 52-week high price of Easy Trip Planners stock on BSE is Rs 57.75 per share and 52-week low price is Rs 37.01 per share, respectively. The company has a market capitalisation of Rs 6744.68 crore. Easy Trip Planners shares tanked 10% in last 6-months, fell 28% year-to-date, and witnessed a dip of 26% in last 1-year. However, in last 2-years, Easy Trip Planners shares gained 11%.

Easy Trip Planners Declares Dividend: The Board of Directors of the Company at their meeting held today i.e. December 11, 2023, has inter-ilia considered and approved the following items:

Declaration of Interim Dividend at the rate of 10% on the Equity Share Capital of the Company i.e. Rs. 0.10/- (Rupees Ten Paisa) per equity share of Re. 1/- (Rupee One) each of the Company for the Financial Year 2023-24. Total payout of Interim Dividend is Rs. 17,72,04,062/- (Rupees Seventeen Crore Seventy-Two Lakhs Four Thousand and Sixty-Two Only). The said Dividend on Equity Shares will be dispatched/credited to those Members whose name appears on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the Equity shares as on 'Record Date" i.e. Tuesday, December 19, 2023. The Interim Dividend will be paid/dispatched on or before 10th January, 2024.

Appointment of Mr. Prashant Pitti (DIN: 02334082) as the Managing Director of the Company."

Easy Trip Planners Valuation: According to the brokerage firm in its report dated September 6, 2023, "We are positive on EMT based on its wide product offerings, successful 'no frills' strategy and industry tailwinds expected to grow in double-digits, benefiting the OTA companies, for which EMT is in a sweet spot. We expect EMT to deliver Revenue / EBITDA / PAT CAGR of 28% / 20% / 21% and the ROE / ROCE to reach at 29% / 39% respectively by FY25E. We initiate coverage with BUY rating on Easy Trip Planner Ltd., connoting a Target Price of Rs 55 (55x stock P/E for FY25E forward EPS of 1/share)."

About: EaseMyTrip (a public listed company at NSE and BSE) is India's one of largest online travel platform in terms of air ticket bookings, based on the Crisil Report-Assessment of the OTA Industry in India, February 2021.Furthermore, growing at a CAGR of 59% during FY20-23 in profits, it is one of the fastest-growing internet companies. Bootstrapped and profitable since its inception, EaseMyTrip offers 'End to End' travel solutions including air tickets, hotels and holiday packages, rail & bus tickets as well as ancillary value-added services. EaseMyTrip offers its users the option of zero-convenience fees during bookings.

Disclaimer:

The stock has been picked from the brokerage report of Bonanza. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.