In the week gone by markets across the globe continued to decline due to rising I bond yields causing investors to question the sky-high valuations of tech stocks in particular. The 10-year bond yields climbed higher on mounting expectations of stronger economic growth and faster inflation after the pandemic ends. Meanwhile, Powell said that he would keep credit flowing until Americans are back to work, rebutting investors who have openly doubted he can stick to that promise once the pandemic passes. Actually, Markets were expecting him to signal more bond purchases to hold down longer-term interest rates. Oil prices spiked to their highest in over a year as OPEC and its allies agreed to extend most oil output cuts into April, after deciding that the demand recovery from the pandemic remained fragile.
Back home, market continued to see volatile movements owing to uncertainty in global markets over inflation and consequent rise in bond yields. The Indian economy seems to be moving on the path of faster recovery with key indicators on consumption and investment showing a sharp slowdown in contraction in January, 2021. Meanwhile, the Indian economy emerged out of technical recession in OctoberDecember 2020 and grew 0.4 per cent with improvement in manufacturing, construction and agriculture. However, former Niti Aayog Vice Chairman Arvind Panagariya has said that it might take longer to become a USD 5 trillion economy due to the coronavirus pandemic-induced disruptions. The inflation target for the Reserve Bank of India's MPC for the next five years starting April is likely to be notified around mid-March. Investors would continue to track global cues particularly the bond yields for any directional move. Besides, movement of currency, inflow and out flow of foreign fund, macroeconomic data and crude oil prices will continue to dictate the trend of the market going forward.
On the commodity market front, CRB gradually moved higher, however the upside was capped by fall in base metals and bullion counter. The dollar was up but the safehaven asset remained broadly weaker as Treasury yields continued to fall. Base metals saw sharp fall last week due to resumption of mines amid unlock of long positions. Nickel fell the most. This week we may see consolidation in this counter. Gold slumped to a near nine-month low on Friday and witnessed continuous three-week decline after Federal Reserve Chair Jerome Powell disappointed investors with his view on rising yields that pushed up the dollar and bond yields. Gold and silver may see consolidation in the range of 43000-46000 and 63000-68000 respectively. Oil prices rose after OPEC and its allies agreed not to increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic. GDP of Euro Area, UK and Italy, Inflation Rate of Mexico and China, Core Inflation Rate and Inflation Rate of US, BoC Interest Rate Decision, New Yuan Loans of China, ECB Interest Rate Decision and ECB Press Conference, Unemployment Rate of Canada etc. many important triggers for commodities this week.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The management of the company has provided robust guidance for growth in regulated equity, which makes optimistic about strong earnings growth for NTPC in the next couple of years. The management believes receivables of Rs. 16,720 crore currently from discoms should reduce with liquidity infusion into discoms under the power sector relief package. The decline in receivables from discoms would strengthen its balance sheet. Thus, it is expected that the stock will see a price target of Rs.125 in 8 to 10 months time frame on a current P/E of 8.39x and FY22 EPS of Rs.14.86
The management has guided for focus on NPA management with strategic actions on strengthening credit monitoring, contain fresh slippages and strengthen recovery efforts. The bank remains cautiously optimistic in terms of the asset quality outlook going ahead in the current year. Thus, it is expected that the stock will see a price target of Rs.192 in 8 to 10 months’ time frame on a target P/BVx of 0.53x and FY22BVPS (Book Value per Share) of Rs.361.33.
The stock closed at Rs 1633.90 on 05th March, 2021. It made a 52-week low at Rs 1065 on 19th March 2020 and a 52-week high of Rs. 1676 on 11th January, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1495.65.
As we can see on charts that stock is trading in higher highs and higher lows sort of rising wedge on weekly charts. Moreover, stock has consolidated in narrow range and formed a “Bullish Pennant” pattern, which is considered to be bullish. Last week, stock has given the breakout of same by registering gains over 3% and also has managed to close above the breakout levels. So buying momentum may continue for coming days. Therefore, one can buy in the range of 1610-1615 levels for the upside target of 1750-1780 levels with SL below 1560.
The stock closed at Rs 903.55 on 05th March, 2021. It made a 52-week low of Rs 519.40 on 19th March, 2020 and a 52-week high of Rs. 954.50 on 08th January, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 850.25.
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, stock is forming a “Continuation Triangle” on weekly chart which is bullish in nature. Last week, stock tried to give the breakout of same but could not hold high levels due to correction in broader indices but managed to close in green with over 4% gains. So, more upside is expected from current levels. Therefore, one can buy in the range of 890-895 levels for the upside target of 970-990 levels with SL below 860.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
It was quite a volatile week for Indian markets as tug of war among bulls and bears kept markets on a roller coaster ride. Nifty indices, however, closed below the key psychological level of 15000 as profit booking in metal counter along with financials and pharma space kept markets under pressure in later part of the week. From the derivative front, put writers at 15000 strike are seen unwinding their positions while call writers added hefty open interest in 15000 & 15100 strikes. The Implied Volatility (IV) of calls closed at 23.58% while that for put options closed at 25.12%. The Nifty VIX for the week closed at 24.15%. PCR OI for the week closed at 1.74 indicates more puts writing than calls. For upcoming sessions, we believe that tug of war among bulls and bears will likely to keep markets on volatile ground and bias is likely to remain in favour of bears as far nifty is holding below 15100 levels. On downside, 14800 would act as immediate support for Nifty below which further selling pressure can mount which can drag Nifty towards 14600 levels as well.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Apr) is expected to maintain its uptrend and trade rangebound within 8600-9600 levels. The increase in demand for turmeric during the COVID-19 pandemic has helped Indian farmers mitigate the effects of low output in recent months. The market is worried about the drastic fall in output, from 25 quintal per acre to 15 quintal, due to heavy rains. In Nizamabad around 50,000 acres has been given over to turmeric cultivation. But this year it shrank to 36,000 acres, as farmers are discouraged by poor returns for four consecutive years. The increase in consumption of the yellow spice as an antioxidant is said to be one of the factors that contributed to the considerable increase in exports and prices. On the spot, the market participants do not see rising prices being a deterrent as demand from local buyers, stockists or even exporters. They add that demand is here to stay until Holi and Ramadan and prices can easily drive higher.Jeera futures (Apr) is expected to trade range-bound within 13500-14500 with an upside bias.Traders see steady demand from local stockists, spice millers and exporters. They also note that the overall demand scenario is good. In Rajkot itself, jeera rates have gained Rs 85-95/20Kgs so far in the past week. Spot rates were steady at Unjhamandi, amid strong festive demand despite rising arrivals. Dhaniya futures (Apr) may witness some correction towards 6700- 6600 levels. New coriander prices continue to face pressure due to cautious buying by domestic traders. Market is also focusing on purchases being made by the South Indian millers and the exporters. Lackluster buying by stockists is weighing on the spice.
Bullion prices headed for a third straight weekly decline after Federal Reserve Chair Jerome Powell disappointed investors with his view on rising yields that pushed up the dollar and bond yields. Powell repeated his pledge to keep credit loose and said although the rise in yields was "notable", he did not consider it a "disorderly" move. Clearly, Powell wasn't dovish enough for markets overnight and, in some ways, green-lighted higher U.S. yields by saying he was comfortable with that. The U.S. 10-year yields held above 1.5%, while the dollar surged to three-month highs. Higher yields increase the opportunity cost of holding non-interest paying bullion. Markets are also starting to take into account that with the ramp-up in vaccines, another U.S. fiscal package and increasing inflation expectations, the Fed might consider tightening sooner than they expected. The WGC said that the amount of gold held by ETF's fell by 84.7 tonnes worth $4.6 billion in February. Holdings of the world's largest gold-backed ETF, SPDR Gold Trust GLD fell to the lowest since May. Silver fell to $25.21 an ounce and was down 5% for the week, its worst since late-November. On the technical front, the Gold price may continue to trade with bearish bias where short term support holds near 43770 breaks and sustain below it may extend the bearish rally till 42200 levels whereas short term resistance is seen near 45800. Ahead in this week, we may continue to witness huge volatility and gold may trade with bearish bias and range would be 42200-45800 levels whereas, Silver may trade in the range of 62000-67180 levels. Whereas on COMEX gold may trade in the range of $1630-$1720 levels and Silver may trade in the range of $23.60-$26.90 levels.
Soybean futures(Apr) is expected to hold support near 4800 levels and maintain its uptrend as the overall fundamentals are string due to mismatch of demand-supply in the international market. The Buenos Aires Grains Exchange said it could cut its harvest forecast for 2020/21 soy production in Argentina, the world's top soymeal exporter, if it does not rain sufficiently in key producing areas over the weeks ahead. Record U.S. soybean crushings and exports are already projected to shrink U.S. soybean stocks to a mere 9-1/2 day supply ahead of the next North American harvest. The market participants would also be watching the U.S. Department of Agriculture will update its estimates on global supplies in a monthly report due on Tuesday. Soy oil futures (Apr) is looking bullish and can reach 1180-1190 levels, while CPO futures (Mar) may trade higher towards 1070-1080 levels taking bullish cues from the international market. On CBOT, US soybean oil has shown a break out and clocked a 3-year high. The USDA weekly export sales numbers are adding optimism among the market participants. The latest data showed that net sales of 5,500 MT for 2020/2021 were up 25 percent from the previous week and 16 percent from the prior 4-week average. The market participants will keep a close watch on the Malaysian Palm Oil Board February supply and demand data is scheduled to release on March 10.The trend of mustard futures (Apr) is bearish and going ahead we can see a downside of 5200-5100 levels. The deterrent factor is the rising arrivals as the farmers are bringing their crop finding prices very attractive. Also, mustard oil is witnessing downfall in prices due to heavy selling and limited demand.
Crude Oil prices extending gains, after OPEC and its allies agreed not to increase supply in April as they await a more substantial recovery in demand amid the coronavirus pandemic. Oil rallied more than 4% hitting its highest in over a year, after OPEC and its allies agreed to keep production unchanged, reasoning that the demand recovery from the coronavirus pandemic was still fragile. The group’s leader Saudi Arabia said it would extend its voluntary oil output cut of 1 million barrels per day (bpd), and decide in coming months when to gradually phase it out. Russia was allowed to raise output by 130,000 bpd in April and Kazakhstan by another 20,000 bpd. Russia aside, the biggest winner of an OPEC+ rollover is the U.S. With such price levels, which are now boosted even more after the news of a possible rollover consensus, the U.S. can comfortably increase production, even from costly break-even projects. Ahead in this week crude price may witness huge volatility and continue to trade with bullish bias within the range of 4530-5040 levels, where buying near support would be the strategy. Natural gas prices whipsawed and tumbled over 2%, following a smaller than expected draw in natural gas inventories. The weather is expected to be colder than normal in the US’s western portion over the next 2-weeks but warmer than normal in the midwest and the east coast. The calendar is now moving into the end of the withdrawal season, and prices will likely remain range-bound unless there is another disruption or a cold spell. Ahead in this week, we may expect prices may trade within a range where support is seen near 185 levels and resistance is seen near 210 levels.
Cotton futures (Apr) will probably take support around 21750 levels and the upside may get extended towards 22500 levels. The reasons are firstly, the International Cotton Advisory Committee (ICAC) has revised upwards the global consumption projections at 24.5 million tonnes (mt) for 2020-21 against 22.8 mt in the previous year. Secondly, cotton exports from India are likely to rise 50 per cent this year to 75 lakh bales in the 2020-21 crop year beginning October with revival in global demand from China and Bangladesh in the last one month. Guar seed (Apr) may find support near 3800 levels and rise till 3950-4000 levels, while guar gum (Apr) is expected to trade with a positive bias in the range of 6000-6300 levels. These counters are taking support from bullish trend oil prices in the international market. Caution about the pandemic took the upper hand Thursday at a meeting of the OPEC oil cartel and allied countries, as they left most of their production cuts in place amid worry that coronavirus restrictions could still undermine recovering demand for crude. The U.S. contract, which had plunged below zero last year as the pandemic restrictions on businesses devastated demand for energy, jumped about 5% on the day to over $64 a barrel. Chana futures (Apr) is looking bullish for this week as it can test 5200-5250 levels and hence any dip can be considered as a buying opportunity. The sentiments are firm demand amid weak stocks of pulses, and bullish tone in dollar chana and strong demand ahead of Holi festival. On the spot, chana prices have soared amid increasing demand from Horeca segment and short fall in arrivals of fresh crops reportedly delayed in the markets of producing areas of Madhya Pradesh.
Base metals may trade with bearish bias as soaring US Treasury bond yields and dollar index may weigh on counter. Copper can move towards 660 levels and facing resistance near 715 levels. Signs of weakening demand in top consumer China and rising mine supply from top copper producers in South America are weighing on prices. China’s factory activity growth eased in February and missed market expectation. Copper imports in China are likely to ease as traders pick up cheaper domestic metal after price rise. The Democratic Republic of Congo produced 1.587 million tonnes in 2020, up 11.8% from 2019, the central bank’s statistics showed. Zinc may trade in the range of 205-220. Lead can trade in the range of 160-170 levels. Zinc treatment charges that miners pay to smelters to refine concentrate are expected to fall to $200 a tonne for 2021 from $300 a year ago due to tight mine supply. As per International Zinc Association, annual demand for zinc in batteries was only 600 tonnes in 2020 but that figure is projected to rise to 77,500 tonnes in 2030. Nickel may trade with sideways to bearish bias in the range of 1150-1250 levels. China's Tsingshan Holding Group, a nickel and stainless steel giant, will provide 100,000 tonnes of nickel matte to Huayou Cobalt and battery materials maker CNGR Advanced Material. One of the major nickel producing mine’s production at Russia which was on a halt due to water shortage, can restart production. Aluminum may trade in the range of 168-178 levels. The US Commerce Department issued final anti-dumping duties on common alloy aluminum sheet from 18 countries investigated, including up to 242.8% on imports from Germany.
COPPER MCX (MAR) contract closed at Rs. 672.85 on 04th Mar’2021. The contract made its high of Rs. 737.00 on 25th Feb’2021 and a low of Rs. 585.70 on 02nd Jan’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs 677.74. On the daily chart, the commodity has Relative Strength Index (14-day) value of 56.507.
One can sell near Rs. 688 for a target of Rs. 660 with the stop loss of Rs. 702.
LEAD MCX (MAR) contract closed at Rs. 163.40 on 04th Mar’2021. The contract made its high of Rs. 174.70 on 25th Feb’2021 and a low of Rs. 157.70 on 22nd Jan’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs. 167.31. On the daily chart, the commodity has Relative Strength Index (14-day) value of 47.974.
One can sell near Rs. 167 for a target of Rs. 160 with the stop loss of Rs. 171.
CHANANCDEX (APR) contract was closed at Rs. 5012.00 on 04th Mar’2021. The contract made its high of Rs. 5090.00 on 30th Oct’2020 and a low of Rs. 4353.00 on 28th Dec’2020. The 18-day Exponential Moving Average of the commodity is currently at Rs. 4815.26. On the daily chart, the commodity has Relative Strength Index (14-day) value of 74.326.
One can buy near Rs. 5020 for a target of Rs. 5300 with the stop loss of Rs 4880.
CRB gradually moved higher, however the upside was capped by fall in base metals and bullion counter. The dollar was up but the safe-haven asset remained broadly weaker as Treasury yields continued to rise. This also restored calm to global markets and turned investors towards riskier assets. It was a bearish week for bullions. Gold futures declined, as gains in Treasury bond yields prompted prices to mark their lowest settlement in nearly nine months. Benchmark U.S. Treasury yields gained around 1.5%, increasing the opportunity cost of holding bullion. Gold ETF liquidation resumed in Feb, with outflows at 66t, the largest monthly selling since Dec'16. The bulk of selling came from North American funds. YTD, ETF investors liquidated nearly 44t, a sharp contrast to a net addition of 85t during the first two months of 2020.On MCX, it broke the psychological levels of 45000. Silver too traded weak. Nickel surprised the market with its sharp fall. It saw a fall of more than 10% on the news that Norilsk Nickel expects to stabilize flooding issues at two of its mines next week. Secondly, data showed that the Purchasing Managers Index (PMI) for downstream nickel industries, including stainless steel, electroplating, alloy and battery, stood at 46.93 in February, down 3.68 points from January. On SHFE, nickel contract open interests fell 1,341 lots to 101,473 lots. Rest of the metals also nosedived on moving up bond yield and dollar index. Oil prices rose after OPEC and its allies agreed not to increase supply in April as they await a more solid recovery in demand from the coronavirus pandemic, overshadowed a U.S. government report showing a humongous build in crude stocks for last to last week. However, the rally looked tired from the higher side.
Oil seeds and edible oil futures saw correction from the upside on weak international market. Soyabean moved down tracking bearish sentiments coming from the international market. CBOT US soybean futures edged lower, consolidating after strong gains as traders weighed adverse crop weather in South America against forecasts for record Brazilian output and signs of a lull in Chinese demand. Steep fall was noticed in spot Mustard seed, oil and oil cake prices in producing states including Rajasthan. Market sentiments dampened as the oil seed arrival reached to 7 lakh bags in across the country. Heavy arrival and slower demand caused for decline in prices. CPO futures saw correction after a five-week nonstop rally. Cotton futures traded sideways as a dip in equity and grain markets spilled over to the natural fiber. Guar was weak on poor demand in churi and korma.
Castor is a non-edible oilseed crop; basically a cash crop, with average 46% oil recovery. Castor oil is the largest vegetable oil exported out of India. India is the biggest exporter of castor oil holding about 80% share of the international trade in this commodity followed by China & Brazil. Castor oil is primarily used in manufacturing plastics, lubricants, cosmetics, candles, and painting material. Castor oil and its derivatives are also used in many medical formulations.
Indian rupee ended the choppiest week after last week turmoil. A sudden rise in US bond yields notably 10 year yield surpassed 1.55% for the first time in a year after Jay Powell, Fed’s Chair vowed to keep monetary policy steady even as the economy improves and inflation begins to rise supported dollar versus rupee and other currencies as well. Accordingly Powell said the central bank expected to be “patient” in withdrawing support for the recovery, given that the labour market remained far from the central bank’s goal of full employment and had made little progress in recent months. From the majors, the UK budget announcement indicated to focus on stimulus for the economy, and not address the record budget deficit for another two years. The UK pound likely to remains within a tight 1.3850- 1.40 trading range in for next week. However the euro is getting weaker in the wake of stronger dollar. Additionally EZ retail sales were down 5.9% in January, much worse than both the previous months +1.8% and expectations of -1.4% which triggered the eurusd lower.
USD/INR (MAR) contract closed at 72.9875 on 04-Mar-2021. The contract made its high of 74.0950 on 01-Mar-2021 and a low of 72.8125 on 04-Mar-2021 (Weekly Basis). The 21-day Exponential MovingAverage oftheUSD/INR is currently at 73.2724.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 44.33. One can buy at 72.90 for the target of 73.90 with the stop loss of 72.40.
GBP/INR (MAR) GBP/INR (MAR) contract closed at 101.7000 on 04-Mar-2021. The contract made its high of 103.4300 on 01-Mar-2021 and a low of 101.6500 on 04-Mar-2021 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 101.7200.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 51.83. One can buy at 101.50 for a target of 102.50 with the stop loss of 101.00.
| 05th MAR | Beijing targets 6% GDP growth after reining in coronavirus |
| 04th MAR | US suspends tariffs on UK exports in Airbus-Boeing trade dispute |
| 04nd MAR | Powell sends dovish message that leaves bond market disappointed |
| 02nd MAR | Rishi Sunak delivers spend now, tax later Budget to kickstart UK economy |
| 02nd MAR | Budget to give £20bn extension to UK Covid support until September |
| 02nd MAR | Covid vaccines show few serious side-effects after millions of jabs |
| 02nd MAR | Australia’s treasurer warns global stimulus threatens financial stability |
| 01st MAR | Growth in UK household savings raises hopes of recovery boost |
| 01st MAR | Italy and Spain enjoy manufacturing bounce back as demand rises |
EUR/INR (MAR) contract closed at 87.9625 on 04-Mar-2021. The contract made its high of 89.6600 on 01-Mar-2021 and a low of 87.8700 on 04-Mar-2021 (Weekly Basis). The 21-day Exponential MovingAverage ofthe EUR/INR is currently at 88.6838.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 41.06. One can sell at 87.80 for a target of 86.80 with the stop loss of 88.30.
JPY/INR (MAR) contract closed at 68.0525 on 04-Mar-2021. The contract made its high of 69.5200 on 01-Mar-2021 and a low of 68.0225 on 04-Mar-2021 (Weekly Basis). The 21-day Exponential MovingAverage ofthe JPY/INR is currently at 69.2711.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 31.50. One can sell at 68.10 for a target of 67.10 with the stop loss of 68.60.
(3/5)
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The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the sale of up to [●] Equity Shares by the Promoter Selling Shareholders aggregating up to Rs.5,100 million.
Considering the P/E valuation on the upper price band of Rs.187, EPS and P/E of estimated annualised FY2021 are Rs.3.75 and 49.89 multiple respectively and at a lower price band of Rs. 186, P/E multiple is 49.62. Looking at the P/B ratio on the upper price band of Rs.187, book value and P/B of estimated annualised FY21 are Rs. 13.10and 14.28multiple respectively and at a lower price band of Rs. 186 P/B multiple is 214.20. No change in pre and post issue EPS and Book Value as the company is not making fresh issue of capital.
Incorporated in 2008, Easy Trip Planners Ltd is the second largest online travel agency in India in terms of gross revenue. Easy Trip offers a range of online traveling services through its website and Ease My Trip android and iOS mobile app. As of November 2019, the firm has served customers with more than 400 domestic and international airlines, and 1,096,400 hotels. As of March 2019, it had 49,494 registered travel agents across major cities of India
One of the leading online travel agencies in India with a customer focused approach, including the option of no-convenience fee: As of December 31, 2020, the company provided its customers with access to more than 400 international and domestic airlines, more than 1,096,400 hotels in India and international jurisdictions, almost all the railway stations in India as well as bus tickets and taxi rentals for major cities in India. It has been providing customers with the option of no-convenience fee, such that customers are not required to pay any service fee in instances where there are no alternate discounts or promotion coupon being availed.
Consistent track record of financial and operational performance with lean and cost efficient operations: The company experienced significant revenue growth from sale of airline tickets between Fiscal 2018 and Fiscal 2019, of 35.22% and 35% for GoAir and SpiceJet, respectively. It believes that the consistent growth in its business is attributable to its technology driven operations and low operational costs resulting in comparatively higher operating margins.
Wide distribution network supported by a hybrid platform: The Company’s three distinct distribution channels, namely B2C, B2E and B2B2C channels provide it with a diversified customer base and wide distribution network. These channels enable the company to provide end-to-end travel solutions for passengers traveling domestically, as well as traveling to and from international destinations.
Well-recognized brand with a targeted marketing strategy: The company believes that its leading market position and operational history have led to recognition of the ‘EaseMyTrip’ brand in India, enabling it to target new customers and provide better leverage when contracting with airlines and hotel suppliers.
Capitalize on travel industry growth opportunities: The company believes that there are significant opportunities for the company to further expand its customer base and, at the same time, increase its market share in India.
Focus on expanding hotel and holiday packages, and railway ticketing operations: As of December 31, 2020, it has partnered with 23 APIs for hotels, which has increased its hotel suppliers network and also provided access to more international hotels on a real time basis. Accordingly, in order to capitalize on such growth opportunities, it intends to focus on direct tie-ups with hotels and hotel suppliers by complementing its existing technology platforms, which it believes would help it reduce its costs associated with confirmation of reservations.
Leverage its existing travel agent network in Tier II and Tier III cities and focus on corporate business to grow its business: The company believes a considerable number of customers in India, especially from Tier II and Tier III cities, still utilize and are expected to continue to utilize the services of traditional travel agents. It intends to strengthen its presence among corporates by leveraging its existing travel agent network and also by integrating its travel software with its corporate customers IT systems to act a ‘one-stop’ solution for all of their travel requirements.
Easy Trip Planners Ltd. (ETPL) is well known for its online tour web portal EaseMyTrip.com. and EaseMyTrip.in. According to the management, it follows the most advanced and latest technology including mobile applications for its operations that helps it for better cost controls and higher yields. The company is operating an asset-light model of business with negligible borrowings. Investors may consider investing in this IPO with a long term perspective.
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