Easy Trip Planners, a travel stock, witnessed a sharp correction on Monday, December 2, after it rose by nearly 12% in the previous two sessions. The stock is trending as Easy Trip Planners last week turned ex-bonus date for its third-ever bonus issue in 2 years. Easy Trip is going to allot a 1:1 bonus issue. Taking into consideration its bonus history, Easy Trip has turned as mere as 500 or 5,000 stocks of investors to higher 8,000 or 80,000 shares.
Easy Trip Planners:
After market hours on December 2nd, Easy Trip shares ended at Rs 17.34 apiece, down by 3.6% on NSE, with a market cap of Rs 6,145.44 crore. This is a decline after the stock gained nearly 12% from November 28-29. Last week, on Friday, the stock even touched the Rs 19 level which was its ex-date, and at that time its 2-sessions gains were about 18% compared to the share price of Rs16.08 apiece on November 27.
The strong rally between November 28 to November 29 was due to its bonus issue record date. After ex-bonus, Easy Trip's stock price has been adjusted and its new 52-week high and low is at Rs 27 apiece and Rs 14.21 apiece.
Easy Trip Planners Bonus Issue:
On November 29, Easy Trip turned ex-bonus for its bonus issue 1:1 ratio, meaning, it will reward 1 free share on the existing 1 share.
This bonus issue is the third by Easy Trip Planners. Earlier, the company paid the first bonus issue of a 1:1 ratio in February 2022, followed by another 3:1 bonus issue in November 2022, which is the highest bonus by the company.
Here's how three bonuses of Easy Trip Planners have multiplied investors' portfolios. The example is just in the number of shares, and neither calculation of gains or losses on investment.
1:1 Bonus Issue February 2022: Let's suppose an investor held 5,000 shares of Easy Trip by the end of its first bonus issue record date which was on February 28, 2022. On 5,000 existing shares, the investor will receive 5,000 bonus shares, taking their total number of shares to 10,000.
3:1 Bonus Issue November 2022: If 10,000 shares are held on the record date November 21, 2022, 3:1 bonus shares, then he or she will receive about 30,000 free shares on existing shares, taking the total number of shares to 40,000.
1:1 Bonus Issue 2024: If the same investor is still eligible with 40,000 shares as of November 29, 2024, the record date, then he or she will get 40,000 bonus shares at a 1:1 ratio. This will take the total number of shares to 80,000.
This is one of the advantages of bonus issues, it has the power of compounding.
BUY/SELL Easy Trip Planners?
As per Trendlyne data, the consensus recommendation on Easy Trip Planners is sold by one analyst. However, EPS is expected to grow by 89.7% in FY25.
Among positive fundamentals of Easy Trip Planners by Trendlyne data are - Debt to Equity Ratio of 0.02 is less than 1 and healthy, which implies that its assets are financed mainly through equity; its Interest Coverage Ratio is 38.25, higher than 1.5, which means that it is able to meet its interest payments comfortably with its earnings (EBIT); and Promoter Pledges are zero. Also, its Return on Equity(ROE) for the last financial year was 17.05%, in the normal range of 10% to 20%.
About Easy Trip Planners:
EaseMyTrip offers its users the option of zero-convenience fee during bookings. EaseMyTrip provides its users with access to more than 400 international and domestic airlines, over 2+ million hotels as well as train/bus tickets and taxi rentals for major cities in India. Founded in 2008, EaseMyTrip has offices across various Indian cities, including Noida, Delhi and Gurugram, Bengaluru, and Mumbai. Its international offices (as subsidiary companies) are in the Philippines, Singapore, Thailand, the UAE, the UK, the USA and New Zealand.
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