Easy Trip Planners shares closed 10% higher on Thursday after the company's board approved a proposal to incorporate a wholly-owned subsidiary to venture into the electric bus manufacturing market.
The company, in an exchange filing, said that Easy Green Mobility, along with YoloBus, another subsidiary of the company, will make EV buses.
The online travel tech platform will invest Rs 200 crore for extensive research and development, product development, and also setting up manufacturing plants in the next two to three years, it said.
The Indian electric bus market is expected to grow at a 24% compound annual growth rate from 2024 to 2030, and the company's entry into this segment marks its commitment to provide eco-friendly and innovative travel solutions, said the company.
In the initial phases, Green Mobility will build a plant with a capacity of 4,000–5,000 buses, and moving forward, it will enhance the production. According to the filing, EaseMyTrip, through YoloBus, will improve the transition to net zero carbon in buses.
The company plans to operate more than 2000 electric buses across the country by 2027–28.
Shares of the company rose as much as 14.12% to Rs 44.838 apiece during Thursday's trade. This compares to a 0.22% decline in the NSE Nifty 50 index.
The stock has risen 8.06% in the last 12 months.
Out of two analysts tracking the company, one maintains a 'hold' rating, while the other recommends a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies downside of 4.7%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
