Taking Revenue of 2020-21 as current yr revenue is unaudited and seems inflated (Some are gone up 4 times in one yr). As such for travel company, need to see profit, revenue has no much meaning but profit and assets are not given by management.
Valuation Cr Revenue 2020-21
Co 1: 32.64 / 12.7 cr
Co 2: 35.7 / 2.73 cr
Co 3: 61.2 / 4.81 cr
Need to see assets, but prima facie seems red flag.
Disc: No position as of now. Not sebi registed. Do your own research.
200 crore of cash burn or stock issuance will happen?
EaseMyTrip Partners with BluSmart for First and Last-mile Travel EaseMyTrip will now offer an environment-friendly fleet into an existing lineup of cabs with this partnership. This partnership
aims at providing sustainable travel solutions for all EaseMyTrip customers, marking a significant
milestone in the green mobility sector.
As part of this association, EaseMyTrip customers can now conveniently book airport transfers
with BluSmartâs fleet of electric vehicles (EVs) in Delhi-NCR and Bengaluru directly through the
EaseMyTrip website. EaseMyTrip, renowned for its commitment to sustainability, has taken a
significant stride towards offering greener, reliable, and sustainable ride-hailing options by
integrating BluSmartâs EVs into its travel offerings.
It is not a new formula for this industry; the revenue addition from this partnership is more beneficial to the taxi services than a brokerage firm that helps the customers. Unless a concept notably drives the revenue revival to the next level, it is not a meaningful effort from one point of view. I believe they deliberately come up in the news unless promoters stakes are liquidated to further levels.
Looks like company has posted rock solid results 
The right valuation for the stock is single digit. Will happen in a ziffy
How does the premium feature for HNIs look for the company?
I donât think that there is any need of fund raise, management claim that they are cash rich company but still diluting the equity.
Management has this need to constantly talk up the stock while diluting stake. Prone to making misleading claims or project small ticket acquisitions as big game changers. Red flag for me, made an exit
I agree with your view, previous bonus and splits are unnecessary.
I am still holding and Hoping that business will grow in the way we want to see, This Quarter could be block buster as per EMT & MMT conversation with media.
In my opinion going forward these customer discountâs will be diminished and improve the bottom line and most focused area for me is hotel business, in which margins are very high as compared to flight tickets booking.
They are somewhat smart management.
They are diluting equity where valuations are high and investing in new businesses at very cheap valuations.
Looks like they want to become a tourism conglomerate from being just online travel agents.
Disclosure: Exited few months ago as I feel they are doing un-necessary diversifications specially where ROE will be incrementally lower.
1000cr fund raise for a 7000cr Mcap companyâŚsome thing is under cardsâŚanybody has idea about what they supposed to do with the funds.
surprised to see this announcement and take your investment decision only when this materialized; I still doubt the credibility of promoters, and hopefully this has not been announced to liquidate promoters equity by diverting retailers to fall with the word WARRANTS.
In the media interactions management informed that they are using these funds for acquisitionâs especially domestic hotels related acquisitionâs and international air ticket booking related acquisitionâs.
They will conclude the fund raise in the current quarter and utilization of funds in next 1 or 2 quarters. if thing go well then we may see good improvement in margins and numbers further.
Nature of acquisitionâs is very important. They have an habit of not disclosing the deal values like earlier equity swap with some 3 travel related companies, if they do same now then we should definitely doubt the creditability of the management.
They are eyeing for Go First too.
Ease my Trip was once among my top holdings (back in 2022), when the growth was strong, demand for travel was rebounding and management was guiding very clearly.
Below are factors which turned me off and now I will not touch this company with a 10-feet pole (at least at the current valuations):
a) Management Churn and indescision: Nishant Pitti and Rikant Pitti (Brothers) have built the company from scratch. Prashant pursued his IIT and post -degree career is US while they were both hustling for âZero-to-oneâ in India. During IPO roadshows, Prashant came back became the face of the company for investors, media, etc. and naturally so as he had be highest pedigree credentials to his name among the 3 brothers. The two brother gave him some equity each (adding up to 10%) with both brothers retained 65%. Promoters still had 75%. So far, so good. But then, soon after IPO, they were unclear about who gets to be the CEO. Prashant never became CEO, although he is the one representing company on con calls, media, roadshows, etc. Nishant was also not clear if he wants to be CEO as they briefly made their long term employee (Nutan, President, alliances) as their CEO but quickly turned back and revoked he position back to President Alliances. Meanwhile, Prashant went to pursue hi personal dreams to build a lending / NBFC business (Source: linkedin). Rikant being the youngest, was never the CEO candidate. They did hire a COO, but that guy left within a year. Now Prashant is coming back as CEO and MD. In this whole musical chair, as an Investor I have lost confidence in their leadership stability.
b) Acquisitions and Expansions: The companyâs management made lot of noise about many acquisitions between 2022 and 2023 and their ambitious plans to move into non-air space and grow via inorganic route. Most of the Acquistions were too small to move the needle and they hardly have been EPS accretive. Acquisitions like Yolobus and many other have no updates on their profitability, etc. Also, The Management made lot of noise when they went Internation and open Dubai office and many subsidiaries in Europe, middle ease, etc. None of them so far are meaningfully adding up to either top-line or bottom-line. The USP of this company is them being a low-cost player and their OPEX is far lower than MMT, which made them bootstrapped and profitable up to IPO. Unfortunately, I do not see them being good capital allocators as incremental ROE and ROCE is now in mid-teens (donât go by what it shows on Screener, hereâs the real ROE and ROCE picture as per their own Q3 Investor presentation:
c) Dilutions and corporate actions: If the company is a Free Cash flow generating machine, why do you need so many QIPs, Bonuses, retail distribution, etc. Just look at the kind of corporate actions, dilution and distribution done by the promoters:
All this has resulted in crazy retail distribution. Look at the retail shareholders growth:
d) No Clear Strategy: From building hotels in Ayodhya, to bidding for Go Air to multiple small acquisitions to openings subsidiaries in all continents, management seems to be doing what âyoung moneyâ usually does - Go out shopping! These businesses may not be ROE and ROCE accretive, going by their own track record of butchering their ROE and ROCE.
e) Lack of Moat and Pricing Power and inherent Vulnerabilities: Ease my trip is a small fish in a large pond. Their deposits of 90 Cr. on the verge of being written off with Go Air insolvency are proof what can happen if such incidents happen in industry privy to casualties. Probably they are rooting for Go Air revival because they are already stuck with huge dues. Might as well revive and recover their dues. It doesnât work out so well in reality. Go air has long list of debtors and they wonât be the first one in queue to recover dues.
All this and much more has built a lethal cocktail, which I am unwilling to drink.
Others, please exercise due diligence and if anyone wants to restore my faith back in the company, please be my guest. 
Disclosure: Not invested.
