Easy Trip Planners shares dive 20% to hit all-time low; here's why

Shares of Easy Trip Planners Ltd plunged in Wednesday's trade to hit their record low levels. The stock nosedived 20 per cent to touch its lower circuit value of Rs 32.83. It saw high trading volume on BSE as around 5.66 crore shares changed hands at the time of writing this story. The figure was way more than the two-week average volume of 9.87 lakh shares. Turnover on the counter came at Rs 203.43 crore, commanding a market capitalisation (m-cap) of Rs 6,202.14 crore.

Today's sharp fall in the share price came after it was reported that promoter Nishant Pitti is likely to sell 15 crore shares, comprising 8.50 per cent of the total share capital of the company, in a block deal. The floor price for the block deal was reportedly set at Rs 38 and the block deal was estimated at Rs 580 crore.

The counter looked weak on technical charts. Support could be seen at Rs 32, followed by Rs 30 and Rs 28 levels.

"EaseMyTrip shares have witnessed a breakdown from its crucial support zone of Rs 39-38 on the back of volumes. The stock is looking bleak on daily charts. On the level-specific front, the 32-30 range would be vital to providing cushion to the fall. While on the higher end, sustenance above the Rs 42-43 zone could only provide fresh traction in the counter," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Easy Trip Planners is bearish but oversold with next support at Rs 30.25 on daily charts. Investors should buy only if the daily close is above resistance of 38.6," said Sebi-registered research analyst AR Ramachandran.

The stock is looking weak on daily charts and it can slip towards Rs 28 level. Resistance will be at Rs 38," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 29.12. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-equity (P/E) ratio of 57.11 against a price-to-book (P/B) value of 11.40. Earnings per share (EPS) stood at 0.72 with a return on equity (RoE) of 19.96.

Easy Trip Planners is a domestic online travel agency (OTA), which was established by three brothers Nishant, Rikant, and Prashant. It is engaged in airline ticketing, hotels, and holiday packages through B2C, B2E, and B2B2C channels, including partnerships with traditional agents in Tier II & III cities.

As of June 2024, Nishant held 49,84,10,788 shares or 28.13 per cent stake in Easy Trip Planners. Rikant held 45,86,40,176 shares or 25.88 per cent stake, while Prashant owned 18,23,27,120 shares or 10.29 per cent stake in Easy Trip Planners. The promoter group held 1,13,93,78,084 shares or 64.30 per cent stake in the travel company.