MakeMyTrip Reports Strong Bookings but Profit Declines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 23 2024
0mins
Should l Buy MMYT?
Source: NASDAQ.COM
MakeMyTrip Ltd (MMYT) saw its stock drop by 8.34% after crossing below the 5-day SMA, despite reporting an 11% year-over-year increase in gross bookings for Q3.
The company's unadjusted profit fell to $7.3 million, down 73% year-over-year, primarily due to significant increases in income tax expenses and finance costs related to convertible notes. Although adjusted EPS of $0.52 exceeded market expectations by $0.10, concerns over high expenses affecting profitability led to a negative market reaction.
This decline in stock price reflects market apprehension despite the strong gross bookings growth, indicating that investors are cautious about the company's ability to manage costs effectively in a competitive environment.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy MMYT?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on MMYT
Wall Street analysts forecast MMYT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MMYT is 118.00 USD with a low forecast of 113.00 USD and a high forecast of 123.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 57.090
Low
113.00
Averages
118.00
High
123.00
Current: 57.090
Low
113.00
Averages
118.00
High
123.00
About MMYT
MakeMyTrip Limited is an online travel provider. The Company's segments include Air Ticketing, Hotels and Packages, and Bus Ticketing. The Air ticketing segment provides the facility to book domestic and international air tickets through Internet-based platforms. The Hotels and packages segment provides holiday packages and hotel reservations through Internet-based platforms, call centers, and franchise stores. The Bus ticketing segment provides the facility to book domestic and international bus tickets through Internet-based platforms. Through its primary websites, such as www.makemytrip.com, www.goibibo.com, and www.redbus.in, and mobile platforms, travelers can research, plan and book a range of travel services and products in India, as well as overseas. The Company's services and products include air ticketing, hotels and packages, bus tickets, rail tickets, car hire, activities and experiences, and ancillary travel requirements. It also provides an inter-city car rental service.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MakeMyTrip Reports 73.1% Profit Decline in Q3
- Significant Profit Decline: MakeMyTrip's Q3 profit plummeted by 73.1% to $7.3 million, or $0.07 per share, primarily due to soaring net finance costs that surged to $27.7 million from $4.8 million last year, indicating substantial financial pressure on the company.
- Adjusted Net Profit Improvement: Despite the overall profit decline, adjusted net profit rose to $50.7 million, or $0.52 per share, up $4.7 million from $46.0 million, or $0.39 per share, last year, showcasing enhanced profitability in specific areas of the business.
- Revenue Growth: Q3 revenue increased by 10.6% to $295.7 million, driven by strong travel demand in India for both domestic and international outbound travel, indicating potential market recovery and the company's competitive position in the travel sector.
- Stock Price Volatility: Following the earnings announcement, MakeMyTrip's stock fell 5.65% to $62.60, but slightly rebounded to $62.66 in pre-market trading, reflecting market caution regarding the company's future performance.
See More
Citi Cuts MakeMyTrip Price Target to $96 Amid Revenue Miss
- Price Target Adjustment: Citi has cut MakeMyTrip's price target from $108 to $96 while maintaining a 'Buy' rating, indicating confidence in the company's future growth despite a cautious outlook on current performance.
- Revenue Miss: MakeMyTrip reported quarterly revenue of $295.7 million, falling short of analyst expectations of $310 million, suggesting weak market demand that could impact future investor confidence.
- Earnings Improvement: Despite the revenue miss, the company reported earnings per share of $0.07, exceeding the expected $0.01, indicating some success in cost control that may lay the groundwork for future profit growth.
- Market Reaction: MakeMyTrip's shares fell over 12% on Wednesday in response to the price target cuts, with a cumulative decline of over 34% in the past year, reflecting investor concerns about its long-term prospects.
See More
MakeMyTrip Ltd. (MMYT) Shares Oversold with RSI at 27.1
- Oversold Signal: MakeMyTrip Ltd. (MMYT) shares have dropped to $65.53, with an RSI of 27.1, indicating that the recent heavy selling may be nearing exhaustion, prompting bullish investors to seek buying opportunities.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 48.4, MMYT's oversold condition suggests potential for price rebound, warranting investor attention to shifts in market sentiment.
- Historical Performance: MMYT's 52-week low is $65.53 and high is $120.725, with the current trading price at $65.54, indicating the stock is hovering near its low, which may attract value investors.
- Investor Strategy: Given the current oversold condition, investors might consider buying MMYT shares as they rebound, capitalizing on potential gains from market fluctuations.
See More
MakeMyTrip (MMYT) Q3 2026 Earnings Call Transcript
See More
MakeMyTrip Limited (MMYT) Reports 11% Gross Bookings Growth but 73% Profit Decline in Q3
- Gross Bookings Growth: MakeMyTrip reported an 11% year-over-year increase in gross bookings for Q3, indicating strong travel demand in India despite challenges in the overall market.
- Profit Decline: The company's unadjusted profit fell to $7.3 million, down 73% year-over-year, primarily due to significant increases in income tax expenses and finance costs related to convertible notes, which impacted profitability.
- Adjusted EPS: On an adjusted basis, the company earned $0.52 per share, up from $0.39 a year ago and exceeding market expectations by $0.10, showcasing success in diversifying its product portfolio.
- Stock Price Reaction: Despite strong gross bookings and adjusted earnings, MakeMyTrip's stock fell over 6% at Wednesday's open due to concerns over high expenses affecting profitability, reflecting market apprehension.
See More
S&P 500 Futures Decline in Pre-Market Session; Netflix and MakeMyTrip Underperform
Market Opening: U.S. stock markets are set to open in two hours.
Teck Resources Performance: Teck Resources Ltd. Cl B (TECK) saw a 5.8% increase in pre-market trading.
Teledyne Technologies Performance: Teledyne Technologies Inc. (TDY) experienced a 5.1% rise in pre-market trading.
Overall Market Sentiment: The pre-market gains indicate positive sentiment among investors for these companies.
See More
MakeMyTrip Reports 73.1% Profit Decline in Q3
- Significant Profit Decline: MakeMyTrip's Q3 profit plummeted by 73.1% to $7.3 million, or $0.07 per share, primarily due to soaring net finance costs that surged to $27.7 million from $4.8 million last year, indicating substantial financial pressure on the company.
- Adjusted Net Profit Improvement: Despite the overall profit decline, adjusted net profit rose to $50.7 million, or $0.52 per share, up $4.7 million from $46.0 million, or $0.39 per share, last year, showcasing enhanced profitability in specific areas of the business.
- Revenue Growth: Q3 revenue increased by 10.6% to $295.7 million, driven by strong travel demand in India for both domestic and international outbound travel, indicating potential market recovery and the company's competitive position in the travel sector.
- Stock Price Volatility: Following the earnings announcement, MakeMyTrip's stock fell 5.65% to $62.60, but slightly rebounded to $62.66 in pre-market trading, reflecting market caution regarding the company's future performance.
See More
Citi Cuts MakeMyTrip Price Target to $96 Amid Revenue Miss
- Price Target Adjustment: Citi has cut MakeMyTrip's price target from $108 to $96 while maintaining a 'Buy' rating, indicating confidence in the company's future growth despite a cautious outlook on current performance.
- Revenue Miss: MakeMyTrip reported quarterly revenue of $295.7 million, falling short of analyst expectations of $310 million, suggesting weak market demand that could impact future investor confidence.
- Earnings Improvement: Despite the revenue miss, the company reported earnings per share of $0.07, exceeding the expected $0.01, indicating some success in cost control that may lay the groundwork for future profit growth.
- Market Reaction: MakeMyTrip's shares fell over 12% on Wednesday in response to the price target cuts, with a cumulative decline of over 34% in the past year, reflecting investor concerns about its long-term prospects.
See More
MakeMyTrip Ltd. (MMYT) Shares Oversold with RSI at 27.1
- Oversold Signal: MakeMyTrip Ltd. (MMYT) shares have dropped to $65.53, with an RSI of 27.1, indicating that the recent heavy selling may be nearing exhaustion, prompting bullish investors to seek buying opportunities.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 48.4, MMYT's oversold condition suggests potential for price rebound, warranting investor attention to shifts in market sentiment.
- Historical Performance: MMYT's 52-week low is $65.53 and high is $120.725, with the current trading price at $65.54, indicating the stock is hovering near its low, which may attract value investors.
- Investor Strategy: Given the current oversold condition, investors might consider buying MMYT shares as they rebound, capitalizing on potential gains from market fluctuations.
See More
MakeMyTrip (MMYT) Q3 2026 Earnings Call Transcript
See More
MakeMyTrip Limited (MMYT) Reports 11% Gross Bookings Growth but 73% Profit Decline in Q3
- Gross Bookings Growth: MakeMyTrip reported an 11% year-over-year increase in gross bookings for Q3, indicating strong travel demand in India despite challenges in the overall market.
- Profit Decline: The company's unadjusted profit fell to $7.3 million, down 73% year-over-year, primarily due to significant increases in income tax expenses and finance costs related to convertible notes, which impacted profitability.
- Adjusted EPS: On an adjusted basis, the company earned $0.52 per share, up from $0.39 a year ago and exceeding market expectations by $0.10, showcasing success in diversifying its product portfolio.
- Stock Price Reaction: Despite strong gross bookings and adjusted earnings, MakeMyTrip's stock fell over 6% at Wednesday's open due to concerns over high expenses affecting profitability, reflecting market apprehension.
See More
S&P 500 Futures Decline in Pre-Market Session; Netflix and MakeMyTrip Underperform
Market Opening: U.S. stock markets are set to open in two hours.
Teck Resources Performance: Teck Resources Ltd. Cl B (TECK) saw a 5.8% increase in pre-market trading.
Teledyne Technologies Performance: Teledyne Technologies Inc. (TDY) experienced a 5.1% rise in pre-market trading.
Overall Market Sentiment: The pre-market gains indicate positive sentiment among investors for these companies.
See More
