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Makemytrip Limited (MMYT)
NASDAQ:MMYT
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Makemytrip
(NASDAQ:MMYT)
75Outperform
Positive Factors
Market Position
MMYT accounts for almost 94% of total combined volumes on hotel room nights across the names.
Market Share and Profitability
MMYT is executing strongly with an agenda to keep market share flat to up and deliver steady improvement in profitability.
Travel Demand
The continued strength in travel demand and improvements in the supply environment, including low-cost airline connectivity, are seen as positive factors for MMYT.
Negative Factors
Global Economic Impact
The stock has corrected approximately 15% during the Nasdaq correction, which may imply some secondary impact on growth from global and India GDP growth headwinds.
Margin Expansion
There are slight revisions to estimates for FY26-27E, with expectations of slightly lower margin expansion compared to earlier forecasts.
Stock Valuation
The reaction for MMYT is overdone.
Makemytrip (MMYT) vs. S&P 500 (SPY)
Market Cap
$10.75B
Dividend YieldN/A
Average Volume (3M)922.80K
Price to Earnings (P/E)46.0
Beta (1Y)1.49
Revenue Growth28.51%
EPS Growth367.34%
CountryUS
Employees4,576
SectorConsumer Cyclical
Sector Strength58
IndustryTravel Services
Share Statistics
EPS (TTM)0.24
Shares Outstanding70,114,580
10 Day Avg. Volume1,034,419
30 Day Avg. Volume922,799
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.01
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$123.75Price Target Upside19.80% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Makemytrip Business Overview & Revenue Model
Company DescriptionMakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels; packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents' network, as well as mobile service platform. As of March 31, 2022, it had approximately 125 franchisee-owned travel stores. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.
How the Company Makes MoneyMakeMyTrip generates revenue through multiple streams, primarily focusing on commissions and service fees. The company earns commissions by acting as an intermediary between travelers and travel service providers such as airlines, hotels, and car rental companies, receiving a percentage of each booking made through its platform. Additionally, MakeMyTrip offers value-added services and charges service fees for certain bookings, which contribute to its revenue. The firm also capitalizes on partnerships with various hospitality and travel brands, leveraging these relationships to offer exclusive deals and promotions to customers. Ancillary revenues are also derived from advertising and promotional services provided to travel suppliers looking to enhance their visibility on the MakeMyTrip platform.
Makemytrip Financial Statement Overview
Summary
Makemytrip displays strong financial health with notable revenue and profit growth. The income statement shows robust margins, the balance sheet reflects a stable equity ratio and low leverage, and the cash flow indicates efficient management despite slight challenges in free cash flow growth.Income Statement
Makemytrip demonstrates strong revenue growth, with TTM revenue increasing significantly compared to previous years. The company has improved its profitability metrics, with a strong gross profit margin of 56.56% and a notable net profit margin of 25.42% in the TTM. The EBIT margin of 11.22% and EBITDA margin of 18.98% further indicate robust operational performance. However, the rapid growth trajectory should be monitored for sustainability.85
Very Positive
Balance Sheet
The balance sheet is solid with an equity ratio of 65.47%, indicating a strong capital base. The debt-to-equity ratio is low at 0.20, reflecting prudent leverage levels. Return on equity is commendable at 20.06% for the TTM, showcasing effective use of equity capital. Nonetheless, the company should ensure it maintains this balance as it scales.78
Positive
Cash Flow
Operating cash flow is healthy, with a positive free cash flow indicating good cash generation. The operating cash flow to net income ratio is favorable, highlighting efficient cash management. However, the free cash flow growth rate shows a slight decrease, suggesting potential challenges in managing capital expenditures.75
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 935.76M | 782.52M | 593.04M | 303.92M | 163.44M | 511.53M | Gross Profit |
| 529.49M | 419.85M | 415.47M | 245.17M | 141.13M | 357.21M | EBIT |
| 105.00M | 65.21M | 34.59M | -20.35M | -67.68M | -157.25M | EBITDA |
| 177.59M | 138.77M | 32.50M | -1.19M | -22.93M | -407.66M | Net Income Common Stockholders |
| 237.91M | 216.80M | -11.17M | -45.57M | -56.04M | -447.52M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 49.87M | 606.79M | 481.07M | 477.46M | 424.89M | 167.70M | Total Assets |
| 107.51M | 1.66B | 1.36B | 1.32B | 1.31B | 1.08B | Total Debt |
| 4.87M | 221.62M | 235.16M | 216.58M | 203.96M | 25.58M | Net Debt |
| -45.00M | -105.44M | -48.85M | 3.30M | -91.11M | -104.30M | Total Liabilities |
| 35.01M | 543.66M | 483.77M | 426.27M | 417.82M | 220.92M | Stockholders Equity |
| 72.50M | 1.08B | 869.57M | 894.13M | 887.52M | 858.24M |
| Cash Flow | Free Cash Flow | ||||
| 109.51M | 112.92M | 15.16M | -6.91M | 55.76M | -125.49M | Operating Cash Flow |
| 116.41M | 125.74M | 32.06M | 6.00M | 64.53M | -112.73M | Investing Cash Flow |
| -37.07M | -75.59M | 46.78M | -77.60M | -118.86M | 73.83M | Financing Cash Flow |
| 9.69M | -6.24M | -6.21M | -9.57M | 219.40M | -10.99M |
Makemytrip Technical Analysis
Positive
103.30
Price Trends
98.57
Positive
105.51
Negative
101.29
Positive
Market Momentum
0.40
Negative
55.96
Neutral
94.30
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MMYT, the sentiment is Positive. The current price of 103.3 is above the 20-day moving average (MA) of 99.44, above the 50-day MA of 98.57, and above the 200-day MA of 101.29, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 94.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MMYT.
Makemytrip Risk Analysis
Makemytrip disclosed 51 risk factors in its most recent earnings report. Makemytrip reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Makemytrip Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $10.75B | 45.97 | 23.09% | ― | 28.51% | 367.34% | |
74 Outperform | $19.66B | 17.05 | 79.84% | 0.26% | 6.64% | 69.85% | |
72 Outperform | $149.01B | 26.30 | -146.32% | 0.79% | 11.11% | 47.03% | |
68 Neutral | $1.60B | 100,951.37 | ― | 16.73% | 3705.88% | ||
67 Neutral | $36.60B | 16.13 | 12.91% | 0.51% | 18.12% | 69.44% | |
61 Neutral | $1.65B | 710.30 | 0.55% | ― | 2.63% | -58.77% | |
60 Neutral | $7.23B | 11.55 | 3.67% | 4.04% | 2.96% | -13.54% |
* Consumer Cyclical Sector Average
Performance Comparison
MMYT
Makemytrip
103.30
42.40
69.62%
TCOM
Trip.com Group Ltd. Sponsored ADR
54.85
7.07
14.80%
EXPE
Expedia
151.15
22.42
17.42%
BKNG
Booking Holdings
4,573.31
1,186.78
35.04%
TRIP
TripAdvisor
11.72
-13.32
-53.19%
DESP
Despegar
19.10
7.45
63.95%
Makemytrip Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: 0.15% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Positive
The earnings call reflected a robust performance with significant growth in international markets and record operating profit. However, there were challenges such as domestic air supply issues and competitive pressures from airline direct bookings. Despite these challenges, the company's strategic initiatives and execution have been strong, resulting in a generally positive outlook.Highlights
Accelerated Year-on-Year Growth
The company reported a year-on-year growth rate of 26.8% in gross booking value in constant currency terms for the quarter, compared to 22.9% in the first half of the fiscal year.
Record High Adjusted Operating Profit
Adjusted operating profit reached an all-time quarterly high of $46 million, marking a year-on-year growth of 38%.
Strong Performance in International Market
International Air Ticketing revenue and international hotel revenue grew by over 63% year-on-year, with the international market becoming more significant.
Expansion in Accommodation Business
The Accommodation segment, including hotels and packages, showed a 24.9% year-on-year growth in adjusted margin on a constant currency basis.
Growth in Bus and Rail Business
Bus Ticketing business grew by 23.6% year-on-year in constant currency, and Rail business continued to bring new users to the platform.
Corporate Travel Expansion
The active corporate customer count on myBiz increased to over 64,000, and on Quest2Travel to 493 large corporates, reflecting strong growth.
GenAI Strategy Implementation
Expansion of Myra, a GenAI powered chatbot, to enhance customer experience in accommodation bookings was highlighted.
Lowlights
Domestic Air Supply Challenges
Supply challenges in the domestic air market were highlighted, with ongoing issues related to grounded planes due to engine problems.
Seasonal Slowdown in October
October experienced a slower growth due to festivals, although November and December picked up significantly.
Pressure from Airline Direct Bookings
Concerns were discussed regarding competitive pressure from airline direct bookings, particularly from Indigo, although it had no major impact yet.
Company Guidance
During the Q3 2025 earnings call for MakeMyTrip Limited, several key metrics were highlighted to illustrate the company's robust performance. The gross booking value grew year-on-year by 26.8% in constant currency terms, compared to 22.9% in the first half of the fiscal year. Adjusted operating profit reached an all-time quarterly high of $46 million, reflecting a 38% increase year-on-year. The Air Ticketing segment reported a 20% year-on-year increase in revenue, while the international hotel segment experienced a 63% growth. The company's bus ticketing business saw a 23.6% rise in gross bookings. Moreover, the corporate travel segment showed strong growth, with active corporate customer counts on myBiz and Quest2Travel platforms increasing to 64,000 and 493, respectively. This overall growth was supported by a strategic focus on expanding into emerging demand segments and leveraging advanced technologies like GenAI to enhance customer experience.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.