Easy Trip Planners Expands Into Medical Tourism
Current Stock Performance: Easy Trip Planners, the parent company of the renowned online travel service provider EaseMyTrip, is making significant strides by venturing into the medical tourism industry. Recently, the company’s board approved a proposal to invest in two healthcare entities: a 30% stake in Rolnid International for ₹60 crore and a 49% stake in Pflege Home Healthcare Center for ₹30 crore. Despite this strategic move, the share price has seen a slight decrease, currently trading at ₹41.88 on the BSE, marking a 0.64% decline. Intraday, shares fluctuated, reaching a high of ₹42.95 and a low of ₹41.62.
Investment Strategy and Financial Transactions
The investment in Rolnid International will be executed through an equity share swap, allowing Easy Trip Planners to issue fully paid-up equity shares on a preferential basis. Meanwhile, for the Pflege Home Healthcare Center, the company has already acquired shares worth ₹20 crore from existing shareholders, supplemented by a new subscription worth ₹10 crore via the same equity share swap mechanism. This dual investment approach reflects the company’s commitment to diversifying its portfolio and entering the burgeoning medical tourism sector.
Plans for Electric Vehicle Manufacturing
In a bid to further diversify its business operations, Easy Trip Planners has also announced plans to enter the electric vehicle (EV) market. The board has sanctioned the establishment of a wholly-owned subsidiary dedicated to manufacturing electric buses. However, this initiative awaits approval from the Ministry of Corporate Affairs. Prashant Pitti, co-founder of the company, emphasized in a recent interview that the company will continue to prioritize profit growth and enhance its presence in international markets and non-air travel segments.
Overview of EaseMyTrip’s Financial Health
The performance of EaseMyTrip has been robust, especially in the first quarter of the financial year 2024-25. The company reported a remarkable year-on-year revenue growth of 23.1%, totaling ₹152.6 crore for the June quarter. Additionally, EBITDA soared by 34.9%, amounting to ₹46.8 crore, while the EBITDA margin improved from 28% to 30.7%. Furthermore, net profit during this period increased by 30.9% to ₹33.9 crore. This strong financial performance underscores the company’s resilience and growth trajectory, particularly in the travel sector.
Stock Performance Overview
| Date | Share Price (₹) | Performance |
|---|---|---|
| 26 October 2023 | 37.01 | One-Year Low |
| 8 February 2024 | 54.00 | One-Year High |
| Current | 41.88 | Current Price |
Conclusion
Easy Trip Planners is strategically positioning itself to capture new markets through its investments in healthcare and electric vehicles. With improving financial metrics and a strong performance outlook, the company aims to enhance its competitiveness in the evolving landscape of the travel and tourism industry. As they continue to prioritize innovative growth strategies, stakeholders will be keen to monitor the implications of these developments on its overall market position.
