Easy Trip Planners in Focus: Nishant Pitti to Sell 14.21% Stake via ₹780 Crore Block Deal

The block deal involving Easy Trip Planners Ltd. (EaseMyTrip) has brought the company’s stock into sharp focus today. Key highlights and implications of this development include:

Key Points from the Report

1. Stake Sale by Nishant Pitti:
   • Co-founder Nishant Pitti is set to sell his remaining 14.21% stake via a block deal, fetching an estimated ₹780 crore.
   • Shares are expected to be sold at ₹15.6 per share.
   • Earlier stake sales by Pitti included:
     • 24.65 crore shares in September 2024, raising ₹920 crore.
     • 6.25 crore shares in June 2023, at ₹42.60 per share.
2. Institutional Investors:
   • Likely buyers include prominent funds like CRAFT Emerging Market Fund PCC, Multitude Growth Funds Limited, and Eminence Global Fund.
3. Stock Performance:
   • The stock has declined 17% YTD in 2024.
   • In the last five sessions, it gained 6.6%, indicating potential speculative activity or interest ahead of the block deal.
4. Financial Performance:
   • Q2 FY25 Results:
     • Net Profit: ₹25.87 crore, down 45.16% YoY.
     • Revenue: ₹144.67 crore, up 2.1% YoY.
     • EBITDA Margin: Declined to 28.2% from 46.8% YoY.
     • Gross Booking Revenue (GBR): ₹2,075.64 crore.
   • Non-Air Business Growth:
     • Hotels Segment: GBR of ₹241.40 crore, up 178.4% YoY.
     • Train, Buses & Others: GBR of ₹40.70 crore, up 19.4% YoY.
     • Dubai Operations: GBR of ₹172.50 crore, up 371.3% YoY.
5. Market Outlook:
   • Despite challenges, Easy Trip’s diversification strategy, especially in non-air travel and international markets, suggests long-term growth potential.
   • However, short-term pressure on the stock price is likely due to the large supply of shares entering the market.

Implications for Investors

• Short-Term Impact:
  • The block deal may create selling pressure in the near term due to increased supply.
  • Institutional participation could stabilize the stock, depending on demand at the set price.
• Long-Term Perspective:
  • The company’s diversification into non-air segments and international markets is promising.
  • Investors should monitor margin recovery, operational efficiency, and GBR growth for sustained performance.
• Valuation Insight:
  • The sale price of ₹15.6 per share is a significant discount to prior transactions, which may influence market sentiment.

Would you like insights on potential strategies or a deeper dive into the company’s valuation metrics?