AI Stock Analysis: Is MMYT a Smart Buy right now?

July 22, 6:15 am

MakeMyTrip Limited (MMYT) is a leading online travel company in India, providing a wide array of travel services including airline tickets, hotel bookings, holiday packages, rail and bus tickets, and car rentals. The company has grown significantly since its inception, leveraging the increasing penetration of internet and mobile usage in India. Such growth has positioned MakeMyTrip as a key player in the online travel market, competing with players like Yatra and Cleartrip.

Price & AI Score for MMYT.

Fundamental Analysis

For the last quarter, MakeMyTrip reported a revenue of $203 million. Although this figure represents a 5.29% decline compared to the previous quarter, it signifies a robust 36.60% growth year-over-year, highlighting strong positive trends in long-term revenue generation.

The net income for the quarter was $172 million, an impressive increase of 608.97% compared to the prior quarter, further bolstered by a dramatic year-over-year escalation of 2,936.90%. This surge suggests highly efficient cost management and a significant improvement in profitability.

The EBITDA last quarter was $24 million. This figure, while showing a decline of 36.64% from the previous quarter, demonstrates a solid year-over-year growth of 30.15%, indicating a particular focus on operational efficiency.

The current Price-Earnings (P/E) ratio stands at 51.14. Typically, a P/E ratio this high might suggest overvaluation, indicating that the stock might be trading higher than its intrinsic value. Investors should be cautious but consider other bullish trends before deciding.

Technical Analysis

MakeMyTrip's current stock price stands at $88.98, showing a significant increase of 10.47% over the last month. On a yearly basis, the stock has rocketed by 208.21%, reflecting a strong long-term upward trend.

Despite these positive metrics, the trend is currently bearish. The Short Moving Average (SMA10) has decreased slightly from 88.61 to 88.48, suggesting a potential downward trend. Additionally, the Relative Strength Index (RSI) is at 79, indicating an overbought condition that often precedes a price pullback. Traders should be wary of a potential drop in stock price in the short term.

Alternative Data Analysis

Examining alternative data, MakeMyTrip appears to be in a stable position with 20 open job positions, a number that has remained consistent. This suggests stable operational demand and growth potential. However, a decrease of 8% in web traffic to 43 million visitors over the past few months might be alarming, as it indicates losing customers on the web platform.

On a positive note, daily mobile app downloads have surged by 46%, reaching 32,000 downloads per day, which might mitigate the decline in web traffic and suggest a shift towards mobile engagement. Customer engagement on social platforms such as Instagram and Twitter remains steady with no significant changes, indicating stable customer interest.

Further, according to AltIndex's AI score, MakeMyTrip has a predictive score of 63, which can be taken as a 'buy' signal, adding a layer of confidence for potential investors based on combined analytical data.

Conclusion and Recommendation

In conclusion, MakeMyTrip demonstrates several robust metrics, especially notable year-over-year growth in revenue and net income. The stock shows a strong long-term upward trend, although short-term technical indicators suggest caution.

The alternative data reveals consistent operational stability and a positive trend in mobile app engagement. Despite some concerns over declining web traffic and high P/E ratio, the overall outlook, supported by an AI score of 63, signals a positive investment scenario.

Based on the data provided, MakeMyTrip appears to hold promising long-term growth potential. Therefore, the recommendation is a cautious 'Buy', keeping an eye on short-term price movements and market conditions.

Disclaimer: This article, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current. Visit MMYT AI Stock Analysis for a more up-to-date analysis.

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