EaseMyTrip shares are grabbing headlines today, as co-founder and promoter Nishant Pitti is all set to sell his remaining 14.21% stake in the online travel portal through a block deal. This move is expected to fetch a hefty Rs 780 crore, according to a recent media report. Let’s break down what this means for the company and investors.
Nishant Pitti’s Big Exit from EaseMyTrip
Nishant Pitti’s decision to offload his remaining stake is a significant move. According to reports, Pitti plans to sell about 50 crore shares at Rs 15.6 each. This follows a series of sales earlier this year, showcasing a gradual exit strategy by the co-founder.
To recap, in September 2023, Pitti sold 24.65 crore shares—approximately 14% of his holding—for Rs 920 crore. Those shares were sold at prices ranging from Rs 37.22 to Rs 38.28 per share. Before that, in June 2023, he sold over 6.25 crore shares on the BSE at Rs 42.60 apiece.
Institutional Investors Eyeing EaseMyTrip Shares
The block deal is expected to attract attention from institutional investors. According to sources, major players such as CRAFT Emerging Market Fund PCC - Elite Capital Fund, Multitude Growth Funds Limited, and Eminence Global Fund are likely to participate.
This interest highlights the potential these investors see in EaseMyTrip shares, despite the stock being down 17% in 2024 so far.
EaseMyTrip’s Performance: A Mixed Bag
It hasn’t been the smoothest year for EaseMyTrip shares, which have fallen by 16.56% year-to-date. However, the stock has shown some recent recovery, gaining 6.6% in the past five sessions.
From a business performance perspective, the September quarter saw mixed results. Let’s delve into the numbers:
- Profit Dip: Net profit dropped 45.16% year-over-year (YoY) to Rs 25.87 crore, compared to Rs 47.18 crore in the same quarter last year.
- Revenue Growth: Revenue increased slightly by 2.1% to Rs 144.67 crore, up from Rs 141.69 crore.
- EBITDA Decline: EBITDA fell to Rs 42.29 crore from Rs 67.65 crore YoY, with margins slipping to 28.2% from 46.8%.
Non-Air Segments Shine Bright
While air travel remains a core segment, EaseMyTrip has diversified its revenue streams, with the non-air business segments showing strong growth.
Hotels Segment
- The Hotels segment reported a gross booking revenue (GBR) of Rs 241.40 crore, a whopping 178.4% YoY increase.
- Hotel night bookings surged 75% to 2.2 lakh, reflecting growing demand and effective market penetration.
Trains, Buses, and More
- The Trains, Buses, & Others segment delivered a GBR of Rs 40.70 crore, marking a 19.4% YoY growth.
International Success in Dubai
- Dubai operations contributed significantly with a GBR of Rs 172.50 crore, a staggering 371.3% YoY growth. This underscores the company’s efforts to expand in international markets.
Strategic Focus on Growth and Diversification
EaseMyTrip has clearly been focusing on broadening its reach. The company emphasized that these achievements highlight its commitment to long-term, profitable growth. By tapping into diversified and international markets, it aims to deliver enduring value to stakeholders.
Cash Flow and Operational Strength
The company reported cash flows from operations standing at Rs 58 crore for the September quarter, further solidifying its financial health.
What’s Next for EaseMyTrip Shares?
As Nishant Pitti makes his exit, all eyes are on how the market reacts and how institutional investors influence the stock’s performance. While 2024 has been a challenging year for EaseMyTrip shares, the company’s focus on diversification and international expansion could pave the way for future growth.
Conclusion
Nishant Pitti’s decision to sell his remaining stake in EaseMyTrip marks the end of an era for the co-founder. While the stock has faced some turbulence, the company’s efforts to diversify its portfolio and expand globally are promising. Whether these strategic moves can offset the challenges and drive sustained growth remains to be seen.
More News: latest business trends 2024
Final Thoughts
EaseMyTrip’s story is one of evolution. From focusing on air travel to embracing a broader range of offerings, the company has shown resilience and adaptability. For investors, the question is whether these moves will translate into long-term profitability and stability for EaseMyTrip shares.
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