pumped about travel during a pandemic?
in March, online travel platform Easy Trip Planners (EaseMyTrip) made its debut on the Indian stock market with a ₹510 crore IPO. with vaccine coverage low at the time, its share didn’t go much higher than its issue price of ₹187 per scrip. now it is trading at around ₹511.50 per scrip, over 2.5 times that price.
now take a step back. there is a lot of excitement over Ixigo’s ₹1,600 crore IPO. big names such as Elevation Capital and Fosun are expected to cash out. in fact, the company had even become profitable until the pandemic hit. it’s not just Ixigo though. EaseMyTrip also had an encouraging quarter.
despite the second wave of the pandemic, EaseMyTrip reported a six-fold jump in profit for Q1 FY22 at ₹15.42 crore vs ₹2.49 crore in Q1 FY21. this was largely due to a robust performance in the air passage segment, which contributed a revenue of ₹18.87 crore in the previous quarter, as opposed to ₹3.5 crore in the year-ago period
even MakeMyTrip, which is listed in the US, is currently trading at around $25 per share, nearly 2 times its pandemic lows, and around the same it was pre-pandemic.
there are several factors contributing to the anticipation:
a look at the recent performances of industries closely associated with travel further strengthens the above reasoning. EaseMyTrip’s jump in air passage revenue reflects an overall rebound in the industry. on August 1, India’s domestic passenger traffic crossed the 2 lakh mark after a gap of 110 days, and the flight count crossed the 2,000 mark. a fare-cap imposed by the government may prevent airlines from making the most of this rebound at the moment, but it’s only a matter of time.
meanwhile, after a subdued end to Q1 FY22, the Indian hospitality industry has really picked up over the past month or so. stay-aggregator OYO’s business has also recovered, and Microsoft is said to be booking a stake in it ahead of a potential $1.2 billion IPO.
whether one chooses to step out right now or not is a personal choice. but it may be a good time to hop aboard a travel stock and enjoy a thrilling trip.