Why EaseMyTrip Share Price is Falling

The Indian travel industry has witnessed robust growth, fueled by factors such as rising disposable incomes, increased leisure travel, and the growing popularity of online travel platforms.

Companies like EaseMyTrip have played a crucial role in facilitating travel experiences for countless individuals.

EaseMyTrip is a leading online travel technology company in India. The company offers a wide range of travel services, including flight and hotel bookings, holiday packages, and car rentals.

It has established a strong presence in the market, known for its user-friendly platform and competitive pricing.

Earlier this month we wrote to you Why EaseMyTrip share price is rising as its subsidiary forayed in the EV sector.

However, the rally was short lived as on Wednesday this week, its share price faced a significant setback, with a 19% decline in a single day.

This downturn can be attributed to a significant stake sale.

Let's delve into the details of this transaction to understand its impact on the stock price.

Promoter Selling

Ease Trip Planners, the parent company of travel aggregator EaseMyTrip, saw its share price drop by 19%. The stock hit a low of Rs 33.1 on the BSE. This decline followed after Nishant Pitti, one of the company's promoters, sold 2.7% of his stake.

Earlier, there was speculation that Pitti might sell up to 8.5% of his shares. However, details of the other parties involved in this sale have not been disclosed yet.

As of June 2024, Nishant Pitti held 28.1% of the company's equity. After this recent sale, he has now sold almost 13.9% of his total stake in EaseMyTrip. The promoter group still holds 64.3% of the company's equity, while the rest, 35.7%, is owned by the public.

Promoter selling often causes concern among investors. When a promoter reduces their stake, it signals a potential lack of confidence, leading to selling pressure. This has been a key factor behind the recent fall in EaseMyTrip' share price.

However, with the stake sale now completed, the overhang on EaseMyTrip share price is also behind. On Thursday its share price surged 5.7%.

The surge in share price on Thursday can also be attribute to its latest announcement, let's take a detailed look at the announcement to understand why EaseMyTrip share price is under investor focus.

Significant Partnerships

EaseMyTrip announced on Thursday that it has signed an exclusive agreement with PhonePe to launch its hotel booking segment.

This collaboration allows PhonePe users to easily access millions of hotel options, both domestic and international. The partnership aims to enhance the travel experience for millions of users, offering special deals and offers on hotels.

In the future, EaseMyTrip plans to introduce more services, such as cab bookings and activities, through PhonePe. The hotel's platform is known for its user-friendly interface, competitive prices, and flexible booking options, including free cancellations.

This move is part of a broader plan to improve travel planning convenience for PhonePe's vast user base.

Earlier this week on Monday EaseMyTrip made an announcement that has partnered with Bank of Baroda to launch a co-branded travel debit card. This is the first co-branded travel debit card introduced by a public sector bank.

The card offers exclusive benefits for frequent travellers, including discounts on travel, hotel stays, entertainment, and shopping. Cardholders will also enjoy free memberships to OTT streaming platforms and vouchers for popular e-commerce websites.

What Next?

EaseMyTrip has ambitious plans for its future growth. The company aims to increase its electric bus fleet to 2,000 in the next four years, showing its commitment to sustainable travel.

The company is also expanding into medical tourism, a sector expected to grow rapidly. Recently, the board approved acquisitions worth Rs 900 million, including investments in Rollins International and Pflege Home Healthcare.

These investments, in sectors outside traditional travel, reflect EaseMyTrip's strategy to diversify its business and explore new growth areas.

In addition, EaseMyTrip has launched ScanMyTrip.com, India's first travel marketplace on the ONDC Network. This platform empowers small businesses, homestays, and travel agents by allowing them to offer services like flights and hotels through a broader digital marketplace.

How EaseMyTrip Share Price has Performed Recently

In the past five days, EaseMyTrip share price has tumbled 9.9%. In the last month, it is down 10.7%.

In 2024, so far its share price is down 10.7% and it is down 12.4% in the last year.

The stock touched its 52-week high of Rs 54 on 8 February 2024 and a 52-week low of Rs 32.8 on 25 September 2024.

About Easy Trip Planners

EaseMyTrip, listed under the name Easy Trip Planner is a leading travel agency in India.

It is engaged in the business of providing reservation and booking services related to travel and tourism.

Its segments include air passage, hotel packages and other services. Its Air Passage section includes call centers, an internet and mobile-based platform.

For more details about the company, you can have a look at, Easy Trip Planners company fact sheet and quarterly results.

You can also compare Easy Trip Planners with its peers.

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