Easy Trip Planners Ltd.

(EASEMYTRIP) CMP : ₹392

Target: ₹475
Rationale:
 Easy Trip Planners Ltd. offers a comprehensive range of travel-related
products and services for end-to-end travel solutions, including airline tickets,
hotels and holiday packages, rail tickets, bus tickets and taxis as well as
ancillary value added services such as travel insurance, visa processing and 52 Week Low / High 147.5 / 454.35
tickets for activities and attractions. Avg. Daily Volume (3M) (‘000) 3975.5
No. of Shares O/S (Mn.) / Mkt. Cap (₹Mn.) 108.65 / 42,535
 In addition, it has more than 59,000 travel agents registered with it across Shareholding (Promoters/Institutional/Others) 74.89 /15.19/9.92
almost all major cities in India, it has the largest network of travel agents
among Key Online Travel Agencies as of such period.
(In ₹ mn) FY-20 FY-21 FY-22E FY-22E
 The company has In-house Advanced Technology Infrastructure. It has a Net Sales 1414 1067 1281 1537
dedicated in-house technology team focused on developing a secure, EBITDA 102 435 503 604
advanced and scalable technology infrastructure and software, support EBITDA Margin 7.2% 40.7% 39.2% 39.3%
customer focused initiatives, introduce innovative services and solutions, and PAT 330 610 722 872
improve its product and service delivery, which has enabled it to maintain high
PAT Margin 23.3% 57.2% 56.4% 56.8%
levels of customer satisfaction and grow its market share. Its technology-
enabled infrastructure and systems have enabled it to operate and maintain EPS (₹) 3.0 5.6 6.6 8.0
an efficient and lean organization relative to the size of its operations. P/E (x) 130.6 70.0 59.4 49.0
Source: Company, Estimates. Note: Prices are as on 21-Jun-21
 The company has a strong balance sheet: It has zero debt with cash and term
deposits in hand of Rs.242 crores as onFY21, which was Rs.146 crores in FY20.
The cash flow from operation stood at Rs.73.8 crores in FY21, as compared to
Rs.27.5 crores in FY20.
Price Performance (Jun’20=100)
 The company is entering into partnerships with international airlines to boost
its international air segment. It recently signed up a deal with Justdial, where 250
all the flight tickets on their portal will be exclusively powered by EaseMyTrip,
giving access their millions of customers. 200

150
 The company reported revenue of Rs.1067 million in FY21 v/s 1414 million in
FY20 & reported a Profit of Rs.610 million in FY21 v/s 330 million in FY20. The 100
strong operational and financial performance is due to the company’s focus on
lean cost model and strong management. 50

0
 Given the company’s strong presence in the growing online ticketing market in
India, lean business model, strong management, stronger balance sheet along
with profitable growth outlook. We initiate our coverage on EASEMYTRIP with
BUY rating and a target price of ₹475 per share.
Research Team Nifty 500 EASEMYTRIP 1
Zensar Technologies Ltd. (ZENSARTECH) CMP : ₹294
Target: ₹360
Rationale:
 Zensar Technologies Ltd. is a leading solutions and technology services
company that partners with global organizations on their digital
transformation journey - providing diverse services and solutions 52 Week Low / High 121.5 / 348
offerings such as digital infrastructure, modernization, autonomous Avg. Daily Volume (3M) (‘000) 1,028
cloud and enterprise applications, AI & analytics among others. No. of Shares O/S (Mn.) / Mkt. Cap (₹Mn.) 225.62 / 66,693
Shareholding (Promoters/Institutional/Others) 49.2% / 40.6% /10.2%
 The company’s serves customers across sectors such as Banking,
Financial Services and Insurance, Consumer Services, Hi-Tech &
Manufacturing across US, Europe and South Africa. (In ₹ mn) FY-20 FY-21 FY-22E FY-23E
Net Sales 43,356 37,814 38,449 43,611
 The company is focusing on five key segments for growth including EBITDA 5,955 6,848 6,957 8,003
experience services, advanced engineering services, data engineering, EBITDA Margin 13.7% 18.1% 18.1% 18.4%
application services and digital foundation growth services under the PAT 2,716 3,070 3,944 4,457
new leadership of Mr. Ajay Bhutoria CEO & MD who joined Zensar in PAT Margin 6.3% 8.1% 10.3% 10.2%
January 2021. EPS (₹) 12.0 13.6 17.5 19.8
P/E (x) 24.6 21.7 16.9 15.0
 The company has further identified four key areas of investment to Source: Company, Estimates. Note: Prices are as on 21-Jun-21
increase traction and drive better revenue growth – Sales,
Partnerships, Talent and Mergers & Acquisitions.

 The company has zero debt and $166 million cash surplus for strategic
acquisitions which can enhance its capacity, access to skills and market. Price Performance (Jun’20=100)
The company is likely to keep its payout at 20-25% to use the cash to 525
fuel growth.

 The company reported consolidated revenue of ₹37,813 million during 350

FY21 a decline of 9.5% compared to FY20. EBITDA of ₹6,848 million
during FY21 an increase of 35.1% compared to FY20. PAT of ₹3,000
million during FY21 an increase of 13.9% compared to FY20. 175

 Given the company’s new leadership with focus on organic and

inorganic growth, margin expansion, strong balance sheet, strong 0
promoter group and attractive valuations. We initiate our coverage on
ZENSARTECH with BUY rating and a target price of ₹360 per share.
Research Team Nifty500 ZENSARTECH 2
Rating & Target Price History

EASEMYTRIP rating history & price chart ZENSARTECH rating history & price chart
250 525

200

150 350

100
175
50

0
0

Nifty 500 EASEMYTRIP Nifty500 ZENSARTECH

3
Disclaimer:

Analyst Certification

 The views expressed in this Research Report accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the
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Ratings Methodology

 Analysts’ ratings and the corresponding expected returns take into account our definitions of Large Caps (>₹300 Billion ) and Mid/Small Caps (<₹300 Billion ) or SEBI
definition vide its circular SEBI/HO/IMD/DF3/CIR/P/2017/114 dated 6th October 2017, whichever is higher and as described in the Ratings Table below:

Ratings Guide (12 months) Buy Hold Sell

Large Caps (>₹300Bn.) 15% 5%-10% Below 5%
Mid/Small Caps (<₹300 Bn.) 20% 10%-15% Below 10%

4
Disclaimer:

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Continued…

5
Contd…

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6
Contd.

Statements on ownership and material conflicts of interest, compensation - ARSSBL and Associates

Answers to the Best of the

Sr. knowledge and belief of the
Statement
No. ARSSBL/ its Associates/ Research
Analyst who is preparing this report

ARSSBL/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? Nature of Interest (if
1
applicable), is given against the company’s name?.
NO
ARSSBL/its Associates/ Research Analyst/ his Relative have actual/beneficial ownership of one per cent or more securities of the subject
2 company, at the end of the month immediately preceding the date of publication of the research report or date of the public NO
appearance?.
ARSSBL/its Associates/ Research Analyst/ his Relative have any other material conflict of interest at the time of publication of the
3
research report or at the time of public appearance?.
NO
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation from the subject company in the past twelve
4 NO
months.
ARSSBL/its Associates/ Research Analyst/ his Relative have managed or co-managed public offering of securities for the subject
5 NO
company in the past twelve months.
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for investment banking or merchant banking or
6 brokerage services from the subject company in the past twelve months. NO
ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation for products or services other than investment
7 banking or merchant banking or brokerage services from the subject company in the past twelve months. NO

ARSSBL/its Associates/ Research Analyst/ his Relative have received any compensation or other benefits from the subject company or
8
third party in connection with the research report.
NO
9 ARSSBL/its Associates/ Research Analyst/ his Relative have served as an officer, director or employee of the subject company. NO
10 ARSSBL/its Associates/ Research Analyst/ his Relative has been engaged in market making activity for the subject company. NO