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1. Company Snapshot

1.a. Company Description

MakeMyTrip 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.

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1.b. Last Insights on MMYT

MakeMyTrip Limited's recent performance was negatively impacted by a Citigroup analyst downgrade, which led to a new 52-week low. The price target was lowered from $108.00 to $96.00, citing a temporary disruption in December due to stricter flight duty time limitation (FDTL) rules for pilots. Additionally, the company's Q3 earnings beat was overshadowed by a decline in trading volume and a decrease in stock price. The stock traded as low as $65.53, with a volume of 4.966 million shares.

1.c. Company Highlights

2. MakeMyTrip's Q3 FY2026 Earnings: A Strong Recovery in Sight

MakeMyTrip's Q3 FY2026 financial performance was marked by a significant recovery in the company's air ticketing business, with adjusted margin growing 20.4% year-on-year to $207.9 million. The company's adjusted operating profit was $50.7 million, and adjusted net profit was $51.4 million, resulting in a 33% year-on-year growth in adjusted diluted EPS to $0.37, significantly beating analyst estimates of $0.1886. The revenue growth was impacted by the GST change, which affected the booking value and margins, but the company's take rate is expected to expand with a higher share of mid to budget hotels.

Publication Date: Jan -22

📋 Highlights
  • <b>Strong Air Ticketing Growth:: Adjusted margin rose to $207.9M (20.4% YoY) driven by international growth.
  • Hotel Segment Expansion:: 20.3% volume growth and 15.9% gross booking value increase.
  • Bus Ticketing Margins:: Adjusted margin hit $42.4M, up 26.1% YoY.
  • High-Growth Ancillaries:: Revenue surged to $27.5M (45.5% YoY growth).
  • Profitability & Buybacks:: Adjusted net profit reached $51.4M with 33% EPS growth; $46.1M in share buybacks.
  • Strong Air Ticketing Growth:: Adjusted margin rose to $207.9M (20.4% YoY) driven by international air ticketing surge.
  • Hotel Segment Expansion:: 20.3% volume growth and 15.9% gross booking value increase despite GST-related revenue slowdown to 9% YoY.
  • Bus Ticketing Margins:: Adjusted margin reached $42.4M, up 26.1% YoY, reflecting operational efficiency.
  • High-Growth Ancillaries:: Revenue hit $27.5M (45.5% YoY growth), fueling overall business diversification.
  • Profitability & Buybacks:: Adjusted net profit hit $51.4M with 33% EPS growth, plus $46.1M in stock buybacks and convertible note repurchases.

Segmental Performance

The hotels and packages segment recorded a 20.3% volume growth, with a 15.9% growth in gross booking value. The bus ticketing business saw a 26.1% year-on-year growth in adjusted margin to $42.4 million, and the ancillaries business grew 45.5% year-on-year to $27.5 million. The company's hotel business revenue growth slowed to 9% year-on-year due to the impact of GST rationalization.

Outlook and Challenges

The company expects the GST impact to continue for at least four quarters, with constant currency growth dependent on currency fluctuations. Domestic air traffic growth is expected to normalize, but the industry still faces some challenges due to IndiGo's capacity reduction. MakeMyTrip's Myra, a generative AI-based travel assistant, has shown encouraging progress, with 50,000 interactions per day, a 2x growth in two months.

Valuation and Growth Prospects

With a P/E Ratio of 83.91 and an EV/EBITDA of 40.7, the market is pricing in significant growth expectations. The company's ROE is 13.93%, and ROIC is 7.51%, indicating a decent return on equity. Analysts estimate next year's revenue growth at 17.9%. The company's ability to maintain its growth momentum and expand its margins will be crucial in justifying its current valuation.

Operational Highlights

The GST cut led to a shift in demand from higher-ticket sizes to the sub-₹7,500 category in the hotel segment, with a 2-3% share shift from premium to mid and budget segments. The company's hotel business reported a 15% constant currency growth in gross booking value, driven by a 20% volume growth and a 5% impact from GST. The net take rate on air is around 7%, which is within the normal range.

3. NewsRoom

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MakeMyTrip Deepens AI-First Strategy with OpenAI Collaboration

Feb -18

Source: businesswire.com

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MakeMyTrip Limited $MMYT is Coronation Fund Managers Ltd.’s 6th Largest Position

Feb -15

Source: defenseworld.net

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MakeMyTrip: Business Should Continue To Grow For A Long Time

Jan -27

Source: seekingalpha.com

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MakeMyTrip (NASDAQ:MMYT) Sees Unusually-High Trading Volume on Earnings Beat

Jan -23

Source: defenseworld.net

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MakeMyTrip Q3 Earnings Call Highlights

Jan -22

Source: defenseworld.net

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MakeMyTrip (NASDAQ:MMYT) Hits New 52-Week Low on Analyst Downgrade

Jan -22

Source: defenseworld.net

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MakeMyTrip (MMYT) Reports Q3 Earnings: What Key Metrics Have to Say

Jan -21

Source: zacks.com

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MakeMyTrip (MMYT) Surpasses Q3 Earnings Estimates

Jan -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.00%)

6. Segments

Hotels & Packages

Expected Growth: 9.0%

Hotels & Packages is expected to grow at 9.0% due to increasing demand for travel and accommodation services. The segment's growth is driven by MakeMyTrip's strong brand presence, user-friendly platform, and expanding inventory of hotels and packages.

Air Ticketing

Expected Growth: 7.5%

Air Ticketing is expected to grow at 7.5% due to steady demand for air travel. The segment's growth is driven by MakeMyTrip's strong relationships with airlines, competitive pricing, and convenient booking platform.

Bus Ticketing

Expected Growth: 8.5%

Bus Ticketing is expected to grow at 8.5% due to increasing demand for affordable and convenient bus travel. The segment's growth is driven by MakeMyTrip's extensive network of bus operators, user-friendly platform, and competitive pricing.

All Other

Expected Growth: 10.0%

All Other is expected to grow at 10.0% due to increasing demand for ancillary travel services. The segment's growth is driven by MakeMyTrip's strategy to expand its offerings and increase customer engagement through value-added services.

7. Detailed Products

Flight Bookings

MakeMyTrip offers online flight bookings for domestic and international flights, allowing customers to search, compare, and book flights with various airlines.

Hotel Bookings

MakeMyTrip provides online hotel bookings for over 25,000 hotels across India and the world, offering a range of options from budget-friendly to luxury stays.

Bus Bookings

MakeMyTrip offers online bus bookings for over 12,000 routes across India, partnering with leading bus operators to provide a convenient travel experience.

Holiday Packages

MakeMyTrip offers customized holiday packages for domestic and international destinations, including flights, hotels, and activities.

Train Bookings

MakeMyTrip provides online train bookings for Indian Railways, allowing customers to search, book, and cancel train tickets online.

Cab Bookings

MakeMyTrip offers online cab bookings for outstation and local travel, partnering with leading cab operators to provide a convenient travel experience.

8. MakeMyTrip Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

MakeMyTrip Limited faces moderate threat from substitutes as customers have alternative options for booking travel and accommodations, but the company's strong brand recognition and loyalty programs help to mitigate this threat.

Bargaining Power Of Customers

MakeMyTrip Limited faces high bargaining power from customers as they have multiple options for booking travel and accommodations, and the company needs to offer competitive prices and services to retain customers.

Bargaining Power Of Suppliers

MakeMyTrip Limited has low bargaining power from suppliers as it has established relationships with a large network of hotels, airlines, and other travel service providers, giving it negotiating power to secure competitive rates.

Threat Of New Entrants

MakeMyTrip Limited faces moderate threat from new entrants as the online travel agency market is relatively easy to enter, but the company's established brand and large customer base provide a barrier to entry for new competitors.

Intensity Of Rivalry

MakeMyTrip Limited operates in a highly competitive market with many established players, leading to high intensity of rivalry as companies compete for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.63%
Debt Cost 3.95%
Equity Weight 83.37%
Equity Cost 10.25%
WACC 9.20%
Leverage 19.95%

11. Quality Control: MakeMyTrip Limited passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Haier Smart Home

A-Score: 7.3/10

Value: 4.9

Growth: 5.8

Quality: 7.5

Yield: 7.5

Momentum: 8.0

Volatility: 10.0

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Yum China Holdings

A-Score: 5.9/10

Value: 3.1

Growth: 5.9

Quality: 6.5

Yield: 1.7

Momentum: 8.0

Volatility: 10.0

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Booking

A-Score: 5.8/10

Value: 3.6

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

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Coupang

A-Score: 5.4/10

Value: 0.9

Growth: 8.6

Quality: 5.6

Yield: 0.0

Momentum: 7.5

Volatility: 10.0

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Airbnb

A-Score: 5.1/10

Value: 2.1

Growth: 9.2

Quality: 8.7

Yield: 0.0

Momentum: 4.0

Volatility: 6.7

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MakeMyTrip

A-Score: 4.9/10

Value: 2.2

Growth: 8.3

Quality: 6.9

Yield: 0.0

Momentum: 3.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

57.15$

Current Price

57.15$

Potential

-0.00%

Expected Cash-Flows