Easy Trip Planners hits 20% upper circuit as stock trades ex-bonus, ex-split

Shares of Easy Trip Planners hit the upper circuit in Monday's trade after the company's shares traded ex-split and ex-bonus.

The tourism services provider had announced the sub-division of equity shares and issuance of bonus shares for which it had fixed 22 November 2022 as the record date for the same.

This means that investors holding the delivery of shares in the demat account as of the given record date will be eligible for the aforementioned corporate action.

The company announced a bonus in a 3:1 ratio, which means that all eligible shareholders will get three bonus shares for every one share held as of the given record.

The company also announced the subdivision of equity shares in a 1:2 ratio, meaning a share with a face value of Rs 2 each will be divided in two equity shares with a face value of Re 1 each.

“We hereby inform that a meeting of the board of directors of the company is scheduled to be held on Wednesday, November 23, 2022, at 11:00 A.M through video conferencing, inter alia, to consider and approve the allotment of bonus equity shares,” the company said in a BSE filing.

Following the corporate action, shares of Easy Trip Planners rallied as much as 20%, their daily circuit limit, to Rs 57.15.

Easy Trip Planners reported a net 12% rise in the net profit at Rs 30.63 crore for the September 2022 quarter, as against a bottomline of Rs 27.27 crore in the same quarter period year.

Its revenue from operations jumped 85% to Rs 104.31 crore in the quarter that ended on September 30, 2022. The company's revenue stood at Rs 56.62 crore in the year-ago period.

Edelweiss Wealth Research has a 'buy' rating on the stock with an adjusted target price of Rs 75.3 apiece (from Rs 452) as it reported better-than-expected revenue, while margins were below estimates on higher advertising expenses.

The management claims to have gained market share in Q2FY23. Robust pickup in air travel in domestic and international markets bodes well for EMT, it said. The company is focusing on expanding its non-air verticals from FY23, it added.

Meanwhile, brokerage ICICI Direct maintained its buy rating on the stock with an unchanged adjusted target price of Rs 63, which implies an upside potential of 20% from the current market price of Rs 52.65.

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