Please refer to important disclosures at the end of this report
1
Easemytrip.com ranked second among the Key Online Travel Agencies
in India in terms of booking volume in the nine months ended December
31, 2020, and third among the Key Online Travel Agencies in India in
terms of gross booking revenues in Fiscal 2020. It offers a
comprehensive range of travel-related products and services for end-to-
end travel solutions, including airline tickets, hotels, and holiday
packages, rail tickets, bus tickets, and taxis as well as ancillary value-
added services.
Key Positives: (a) One of the leading online travel agencies in India with a
customer-focused approach, including the option of a no-convenience fee.
(b) Good track record of financial and operational performance, even in the
time of lockdown the company demonstrated its strength and was able to
report revenue of 50 crores in 9MFY2021. (c) Company business has shown
robust recovery in Q3FY21 and reaches normalcy of 70%. (d) A very strong
balance sheet with cash & bank balance of 140 Crores along with zero debt.
Investment concerns: (a) Competition will always remain a concern for this
industry as well as companies need to compete with Paytm in Air tickets
booking and aggregators like OYO in hotel business etc. (b) COVID-19
pandemic has had and is expected to have, a material adverse effect on the
travel industry along fear of the second wave of covid cases in India may
adversely affect the company performance. (c) Any reduction in commissions
or fees by our travel suppliers may adversely affect the business operations.
(d) Company revenue majorly depends on the Air tickets business as 94% of
revenue comes from it in FY2020.
Outlook & Valuation: 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.
Key Financials
Y/E March (cr)
FY2019
FY2020
Net Sales
151.1
179.7
% chg
33.1
18.9
Net Profit
24.0
34.6
% chg
-
44.4
EBITDA (%)
29.7
28.6
EPS (Rs)
2.2
3.2
P/E (x)
84.6
58.6
P/BV (x)
29.9
19.8
ROE (%)
35.3
33.7
ROCE (%)
43.2
35.3
EV/EBITDA
43.4
37.0
EV/Sales
12.9
10.6
Source: Company, Angel Research
SUBSCRIBE
Issue Open: March 08, 2021
Issue Close: March 10, 2021
Offer for sale: `510cr**
QIBs 75% of issue
Non-Institutional 15% of issue
Retail 10% of issue
Promoters 75.0%
Others 25.0%
Trading commences - 19th March 2021
Issue Details
Face Value: `2
Post Issue Shareholding Pattern
Issue size (amount): `510cr**
Price Band: `186-187
Lot Size: 80 shares and in multiple
thereafter
Post-issue implied mkt. cap: *`2,021cr -
**`2,032cr
Promoters holding Pre-Issue: 100%
Promoters holding Post-Issue: 75%
*Calculated on lower price band
** Calculated on upper price band
Book Building
Yash Gupta
+022 39357600, Extn: 6872
Research Analyst
EASY TRIP PLANNERS LIMITED
Ltd
IPO Note
March 06, 2021
EASY TRIP PLANNERS LIMITED | IPO Note
March 06, 2021
2
Company Background
Company commenced operations in 2008 by focusing on the B2B2C
(business to business to customer) distribution channel and providing travel
agents access to their website to book domestic travel airline tickets in order
to cater to the offline travel market in India. Subsequently, by leveraging on
B2B2C channel, it commenced operations in the B2C (business to customer)
distribution channel in 2011 by primarily focusing on the growing Indian
middle class population’s travel requirements. Consequently, due to
increased presence in the B2B2C and B2C channels, it commenced
operations in the B2E (business to enterprise) distribution channel in 2013
with end-to-end travel solutions to corporates. With presence in three distinct
distribution channels provide a diversified customer base and wide
distribution network.
Key Highlights of Easy Trip Planner
Second largest and only profitable OTA player in India in in terms of
positive return of equity in FY2019.
In FY2020 reported profit after tax of 35 crores along with this company
net cash flow of 48 crores in FY2020 from operation activity.
As of Dec 31, 2020, company has an access to more than 400
international and domestic airlines for booking.
Company has more than 1,096,400 hotels in India and international
jurisdictions for booking on its platform.
Company covers almost all the railway stations in India as well as bus
tickets and taxi rentals for major cities in India.
Company provides the option of no-convenience fee option to their
customers, which is a big mote for the company as compared to its
competitors.
Registered Customers base in the B2C channel increased at a CAGR of
28.24% from 5.87 million FY’18 to 9.66 million FY’20. In Fiscal 2019,
GoAir, and SpiceJet, recognized as amongst the top travel partners in
terms of revenue and passenger count.
It offers a comprehensive range of travel-related products and services
for end-to-end travel solutions, including airline tickets, hotels and holiday
packages, rail tickets, bus tickets and taxis as well as ancillary value-
added services such as travel insurance, visa processing and tickets for
activities and attractions.
EASY TRIP PLANNERS LIMITED | IPO Note
March 06, 2021
3
Issue Details
Easy trip planner is raising `510 Cr through Offer For Sale (2,72,72,727 shares),
price band of `186-187.
Exhibit 1: Pre & Post issue Shareholding
No of shares
(Pre-issue)
%
(Post-issue)
%
Promoter
10,86,45,000
100
8,14,83,750
75
Public
-
0
2,71,61,250
25
Total
10,86,45,000
100
10,86,45,000
100
Source: Company, Angel Research
Objects of the offer
Fresh Listing of the Equity Shares to enhance visibility/brand and provide
liquidity to its existing Shareholders
Leveraging on arrangement of partnership with international airlines and
corporate customers to further boost international air travel
Key Management Personnel
Mr. Nishant Pitti is a Whole-time Director and CEO of our Company. He is one
of the Promoters and has been associated with our Company since inception. Mr.
Nishant Pitti holds a bachelor’s degree in commerce from the University of Delhi
and has approximately 12 years of experience in the travel and tourism sector.
He has been awarded the ‘Doctor of Excellence’ for excellence in the field of
travel management by the Confederation of International Accreditation
Commission (CIAC), Global at the 6th International Education Forum, 2019 and
‘TnH Face of the Future’ at the Travel and Hospitality (TnH) Awards, 2016. He
was also awarded ‘Entrepreneur of the Year in Service Business Travel’ at the
Entrepreneur Awards, 2019.
Mr. Rikant Pittie is a Whole-time Director of our Company and has been on
Board since August 8, 2011. He is also one of our Promoters and has been
responsible for operations, sales, marketing, human resources and technology in
the Company. He has attended the course for a bachelor’s degree in technology
at Kurukshetra University, Ambala and has approximately nine years of
experience in the travel and tourism sector.
EASY TRIP PLANNERS LIMITED | IPO Note
March 06, 2021
4
Consolidated Profit & Loss Statement
Y/E March ( cr)
FY2018
FY2019
FY2020
9MFY2021
Total operating income
113.6
151.1
179.7
81.6
% chg
-
33.1
18.9
Total Expenditure
101.3
106.3
128.4
37.9
Service cost
0.0
0.0
3.7
0.0
Employee benefits expense
15.9
22.0
29.9
14.7
Other expenses
85.4
84.3
94.7
23.2
EBITDA
12.3
44.8
51.3
43.6
% chg
-
265
15
(% of Net Sales)
10.8
29.7
28.6
53.5
Depreciation& Amortisation
0.2
0.5
0.7
0.5
EBIT
12.0
44.3
50.6
43.2
% chg
-
268.3
14.1
(% of Net Sales)
10.6
29.3
28.2
52.9
Finance costs
1.5
3.2
3.1
1.3
Other income
-6.6
-5.3
-
-
(% of Sales)
-5.8
-3.5
-
-
Recurring PBT
3.9
35.8
47.5
41.8
% chg
-
809
32.6
Exceptional item
-
-
-
-
Tax
3.9
11.8
12.9
10.7
PAT (reported)
0.0
24.0
34.6
31.1
% chg
-
-
44.4
(% of Net Sales)
0.0
15.9
19.3
38.1
Basic & Fully Diluted EPS (Rs)
0.0
2.2
3.2
10.9
% chg
-
-
44.4
Source: Company, Angel Research
EASY TRIP PLANNERS LIMITED | IPO Note
March 06, 2021
5
Consolidated Balance sheet
Y/E March ( cr)
FY2018
FY2019
FY2020
Q3FY21
SOURCES OF FUNDS
Equity Share Capital
7.2
21.7
21.7
21.7
Other equity (Retained Earning)
36.7
46.2
81.0
112.4
Shareholders Funds
44.0
67.9
102.7
134.1
Total Loans
-
-
-
-
Other liabilities
1.0
34.7
40.6
28.9
Total Liabilities
45.0
102.6
143.3
163.0
APPLICATION OF FUNDS
Property, plant and equipment
6.3
7.1
7.8
7.7
Investment property
9.8
8.4
2.3
2.3
Intangible assets
0.0
0.0
0.1
0.2
Intangibles under development
-
-
0.3
0.3
Current Assets
155.8
224.8
252.6
273.9
Inventories
3.1
-
-
-
Trade receivables
43.1
41.8
58.4
19.8
Cash and cash equivalents
7.7
34.1
13.1
44.6
Other bank balances
1.3
52.0
117.8
96.5
Other financial assets
1.6
42.7
20.4
21.1
Other current assets
53.7
17.5
28.7
86.1
loan
17.2
36.8
13.2
4.8
Investment
28.0
-
1.0
1.0
Current Liability
135.3
140.4
139.0
194.0
Net Current Assets
20.5
84.4
113.6
80.0
Other Non Current Asset
8.3
2.7
19.2
72.5
Total Assets
45.0
102.6
143.3
163.0
Source: Company, Angel Research
EASY TRIP PLANNERS LIMITED | IPO Note
March 06, 2021
6
Consolidated Cash Flow Statement
Y/E March ( cr)
FY2018
FY2019
FY2020
Q3FY21
Operating profit before working capital changes
34.8
6.6
21.8
13.2
Net changes in working capital
-14.6
74.9
31.8
45.3
Cash generated from operations
20.2
81.5
53.6
58.5
Direct taxes paid (net of refunds)
-7.4
-11.3
-5.7
-2.4
Net cash flow (used in)/from operating activities
12.8
70.2
47.8
56.0
Interest received
4.8
5.0
7.8
7.2
Dividend received
0.3
0.2
0.0
0.0
Others
-0.4
-47.2
-76.4
-31.7
Cash Flow from Investing
4.7
-42.0
-68.6
-24.5
Repayment of short term borrowing
-10.4
0.0
0.0
0.0
Payment of principal portion of lease liabilities
0.0
0.0
-0.2
0.0
Payment of interest portion of lease liabilities
0.0
0.0
-0.1
0.0
Finance costs paid
-1.8
-1.7
0.0
0.0
Cash Flow from Financing
-12.2
-1.7
-0.3
0.0
Inc./(Dec.) in Cash
5.3
26.4
-21.0
31.5
Opening Cash balances
2.4
7.7
34.1
13.1
Closing Cash balances
7.7
34.1
13.1
44.6
Source: Company, Angel Research
Key Ratios
Y/E March
FY2019
FY2020
Valuation Ratio (x)
P/E (on FDEPS)
84.6
58.6
P/CEPS
83.0
57.4
P/BV
29.9
19.8
EV/Sales
12.9
10.6
EV/EBITDA
43.4
37.0
Per Share Data ()
EPS (Basic)
2.2
3.2
EPS (fully diluted)
2.2
3.2
Cash EPS
2.3
3.3
Book Value
6.3
9.5
Returns (%)
ROE
35.3
33.7
ROCE
43.2
35.3
Turnover ratios (x)
Receivables (days)
101.1
118.5
Inventory (days)
-
-
Payables (days)
97.8
70.6
Working capital cycle (days)
3.2
47.9
Source: Company, Angel Research
EASY TRIP PLANNERS LIMITED | IPO Note
March 06, 2021
7
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited, Metropolitan Stock Exchange Limited, Multi Commodity Exchange of India Ltd and National
Commodity & Derivatives Exchange Ltd It is also registered as a Depository Participant with CDSL and Portfolio Manager and
Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Limited is a registered
entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate
the contrary view, if any
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this
report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we
cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this
document. While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there
may be regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or
in connection with the use of this information..
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited, Metropolitan Stock Exchange Limited, Multi Commodity Exchange of India Ltd and National
Commodity & Derivatives Exchange Ltd It is also registered as a Depository Participant with CDSL and Portfolio Manager and
Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Limited is a registered
entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate
the contrary view, if any
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.