CEO exits, odd pivots, and falling profits: What's happening at EaseMyTrip?

EaseMyTrip emerged as a market darling soon after its March 2021 stock market debut. The online travel company impressed investors with stellar financials—operating margins of over 30 per cent, return on capital employed above 50 per cent (in FY21-23), and a 4x profit growth between FY20 and FY23. The market rewarded this performance handsomely, and the stock soared over 5x from a bonus-adjusted Rs 6 to Rs 34 by November 2022. But 2024 brought a dramatic plot twist. The stock crashed over 52 per cent from its peak during the year dragged by weakening financials and a series of puzzling decisions that have left investors questioning whether this growth story is running out of fuel. So what went wrong? Let's take a look. EaseMyTrip plagued by competition Intense competition in the online travel agency space from major players such as MakeMyTrip, Yatra, and Cleartrip remains fierce. EaseMyTrip initially carved a niche with its low-cost structure and operational efficiency, enabling it to outshine competitors in profit margins. This edge, though,