Easy Trip Planner CEO resigns, plummeting stock, is it opportunity to buy?
Nishant Pitti, CEO of the Easy trip planner resigned from it's post with effect from January 1, 2025 citing personal reasons. He is not only the CEO of the company but also the one of the promoter of the company holding nearly close to 14% stake in company. He already disinvested his 1.4% of stake before resigning that caused the share to dip 10% in a single day. At current, market price of share is further below the average selling price of Nishant Pittti 1.4% so look like market has negative impact of this news.
Interestingly, other cofounders/promoters of the company are his brothers Prashant Pitti and Rikant Pitti , holding 10.29% and 25.88% in the company. Meanwhile Rikant Pitti elevated to CEO from CFO position to fill the position of the CEO that get vacant by resignation of his brother. So frankly speaking , current CEO has got bigger stake in the company then the outgoing CEO and there is no news of disinvestment of his stake in the company in recent years.
Now this makes an interesting case as new CEO has significant stake in the company but outgoing CEO still has 12.8% stake and if he decided to disinvest all of his stake , I guess price is going to further dip.
I actually like to keep an eye on dip and buy the dipping stock a, but in this case I decided to not to touch this stock in current scenario due to below reasons:
- Currently market went below the price of the "block" deal price, so look lit it has net negative impact.
- If another 12.8% of shares hit the market then market might go down further.
- Though company is profitable but it does not look impressive to me.
- Personally I feel that travel sector is a volatile sector and I am more cautious while investing in this sector.
So, what are you thoughts and what will be your thoughts and plan of action in this case.