1:1 Bonus Issue: Easy Trip Planners Share Price Jumps On Bonus Announcement, Record Date Fixed; BUY?

The shares of Easy Trip Planners surged over 3% on November 19, hitting an intraday high of Rs 30.95 apiece on the National Stock Exchange (NSE). The rally came after the company announced November 28 as the record date for its 1:1 bonus share issuance.

Eligible shareholders will receive one additional share for every share they hold on the record date. The bonus issue was approved by shareholders earlier, with the company officially announcing the plan in October.

In a stock exchange filing on November 15, the company revealed its strategic acquisition of a 49% stake in Planet Education Australia Pty Ltd, a comprehensive education services provider. This investment marks Easy Trip Planners' entry into international study tourism. The acquisition leverages Planet Education's expertise in international education services while giving Planet Education access to Easy Trip's vast customer base, B2B network, and technological infrastructure.

On the financial front, Easy Trip Planners reported a mixed performance for the September quarter of FY 2024-25. While consolidated revenue from operations grew by 2% year-on-year to Rs 144.67 crore, the company's consolidated profit-after-tax (PAT) plummeted by 45% to Rs 25.87 crore, compared to Rs 47.18 crore in the same quarter of the previous fiscal.

Despite the positive developments, Easy Trip's stock performance this year has been underwhelming. It has delivered a negative return of approximately 25% in 2024, with a 23% decline over the past 12 months. However, the recent announcements, including the bonus share issuance and strategic acquisition, appear to have boosted investor sentiment, as reflected in the day's stock performance.

By 1:30 pm on November 19, the shares were trading at Rs 30.55 apiece, up over 2% on the NSE. Market participants view the bonus issue and diversification into the education tourism sector as steps that could potentially revitalize the stock.