EaseMyTrip Shares Jump 15% After Announcing Insurance Foray
This is a strategic move by the company to diversify its service portfolio and tap into the insurance market, the company said.
Shares of Easy Trip Planners Ltd. jumped over 15% on Thursday after it announced venturing into the insurance sector with the launch of its subsidiary, EaseMyTrip Insurance Broker Pvt. The company does business as online travel planning platform EaseMyTrip.
This is a strategic move by the company to diversify its service portfolio and tap into the insurance market by creating a specialised product to solve customer needs, an exchange filing said.
The new venture is expected to solidify EaseMyTrip's position in the industry and cater to a Rs 7.9 trillion market with the company's own 20 million userbase, it said.
The company's insurance foray comes days after it made headlines for suspending flight bookings to the Maldives in the wake of diplomatic tensions between India and the island nation.
EaseMyTrip's stock rose as much as 15.71%, the highest since March 3, 2023, before paring gains to trade 12.54% higher as of 12:48 p.m. This compares to a 0.22% advance in the NSE Nifty 50.
The stock has fallen 5.14% in the last 12 months. The total traded volume so far in the day stood at 15 times its 30-day average. The relative strength index was at 80, indicating that it was overbought.
Of the two analysts tracking the company, one recommends a 'hold' and other suggests a 'sell', according to Bloomberg data. The average 12-month consensus price target given by analysts implies a downside of 4.2%.
