Shares of Easy Trip Planners Limited dropped 3.32% on Monday morning, trading at ₹29.10 on the NSE. The decline comes after the company reported disappointing Q2 FY25 results last week, with revenue falling 33% short of analyst expectations.
Key Financial Highlights:
- Revenue: ₹1.4 billion, significantly below analyst estimates of ₹2.1 billion.
- Earnings Per Share (EPS): ₹0.58, in line with forecasts.
- Revenue Forecast Revision: Reduced to ₹6.35 billion for FY25 from ₹9.1 billion earlier.
- EPS Forecast Revision: Lowered to ₹1.10 from ₹1.20 for FY25.
Analyst Sentiment:
The results have led to a 7.9% cut in the consensus price target, now at ₹41. The significant reduction in revenue projections indicates potential challenges ahead for the company. Analysts have also flagged a slowdown in revenue growth, now expected at 3.1% annually compared to the historical growth rate of 39% over the last three years.
Industry Comparison:
Easy Trip’s projected growth lags behind peers in the travel and tourism sector, which are expected to grow at an average of 20% annually. The weaker performance and reduced forecasts have raised concerns about the company’s ability to compete effectively in the sector.
Market Outlook:
The Q2 performance highlights operational challenges and a potential slowdown in the company’s growth trajectory. Investors remain cautious, and further updates on strategic adjustments will be closely watched.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always consult a financial advisor before making investment decisions.
