Easy Trip Planners IPO: Brokerage Views

This post on Easy Trip Planners IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Easy Trip Planners IPO or not.

Related Posts : Easy Trip Planners IPO Review

Easy Trip Planners IPO: Grey Market Premium etc.

  • 08-03-21 GMP 130-140

Subscription: Easy Trip Planners IPO ( x times)

Day / X timesQIBNIIRetailTotal 
Day 377.95384.2670.78160.19
Day 20.284.0732.897.24
Day 10.000.1512.642.34
Total Retail Applications ~ 1994917
Appl wise Retail 58.52 x

Consolidated Brokerage Views on Easy Trip Planners IPO

Anand Rathi :”At the upper end of the IPO price band, it is offered at 58.62x its FY20 earnings, with a market cap of Rs. 2032 crores. There are no listed entities in India whose business portfolio is comparable with that of its business. Given the company’s strong operating and financial performance in a highly competitive and growing industry; including strong margins, RoNW of 32.58% in FY20, strong balance sheet and management – we give this IPO a “Subscribe” rating”

Angel Broking: “based on FY2020 the IPO is priced at a PE of 58x at the upper end of the price band along with a very good ROE of 34% and ROCE of 35%. The company has the potential to grow exponentially in near future. Looking at the company performance in FY 2020 and strong balance sheet is given that we have certain concerns regarding competition in this business we are assigning a “SUBSCRIBE” recommendation to the issue.”

Capital Market : ” Score 48/100 ; The company has no comparable listed peers with exact product/business profile. MakeMy Trip which is listed on Nasdaq is having negative EPS and its trading at m-cap to FY2020 gross booking revenues ratio of 0.54 times, while the company is offered at post issue m-cap to FY2020 gross booking revenues ratio of 0.48 times. Among the online services providers, IRCTC offering online train ticket booking services is trading at 58.9 times FY2020 EPS and 361.5 times 9MFY2021 EPS. Matrimony.com providing online matchmaking services is trading at 81.8 times FY2020 EPS and 76.3 times its 9MFY2021 EPS. The company is profitable online travel company since inception with healthy RoE of 23.1% for 9MFY2021 and 32.6% for FY2020. The company has recovered 70% booking volumes in Q3FY2021 as compared to Q3FY2020, while MakeMyTrip was able to achieve 46% and Yatra Online, Inc. at 44% of booking volumes for Q3FY2021. Market fancy for the internet/online stocks, likely turnaround of the tourism sector, positive sentiments around the vaccine roll out is likely to benefit the company. “

Choice Broking: “At higher price band of Rs. 187, Easy Trip is demanding a P/E multiple of 58.6x (to its restated FY20 EPS of Rs. 3.2). Even though its financial performance on operating level is inconsistent, considering its market positioning among the key OTAs, we feel that the company has advantages like scalable business model, business growth in excess of the sector, cash generation ability etc. Thus considering the above observations, we assign a “SUBSCRIBE” rating for the issue.”

Geojit: “At the upper price band of Rs.187, ETPL is available at P/E of 49x (annualized basis on FY21E EPS of Rs.3.8) which is fairly priced. With no listed peers and as travel business is expected to pick up its charm going forward, we assign a “Subscribe” rating for the issue on a long-term basis considering the wide distribution network, rising digitalization, negligible debt and asset light business model of the company”

ICICIDirect: Taking cognisance of the huge growth opportunities for EaseMyTrip and a lean cost of operations that would aid flow of profitability to the bottomline, we recommend SUBSCRIBE rating to the issue. The company is available at a P/E of 61.5x on FY20 PAT.”

Motilal Oswal : “We like ETPL given its lean business model, differentiated offering and strong customer connect. However the travel industry which was significantly impacted due to Covid-19, is likely to take much longer time to revive; though recovery is visible and vaccination drive would further propel it. The issue is valued at 49.9x FY21E P/E on an annualized basis. Being the first in the segment to get listed in India, ETPL could generate high investor interest. Thus we recommend Subscribe to the IPO.”

SP Tulsiyan Website: “In view of contracting profit margin, structured objects of fresh issue, client concentration risk and unattractive pricing, one can give the Easy Trip Planners IPO a miss.”


Standard disclaimer: Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above information is collated from various online sources and is for educational purpose only. Please visit individual brokerage sites to read the actual reports. Please do not make your investment decisions based on this info as it is not complete and exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.

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