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MakeMyTrip - AI Stock Analysis

Analysis generated February 7, 2025

MakeMyTrip Limited (NASDAQ: MMYT) is a leading Indian online travel company that provides travel services such as hotel bookings, flight tickets, rail tourism packages, and bus tickets. Established in 2000, MakeMyTrip has grown to become a dominant player in the Indian travel market. The company offers a comprehensive suite of travel services that cater to both domestic and international markets. MakeMyTrip's technological capabilities and expansive service offerings have established it as a reliable platform for Indian and global travelers.

Fundamental Analysis

MakeMyTrip’s financial performance indicates strong growth. The revenue for the last quarter was $267 million, marking a 26.72% increase compared to the previous quarter and a 24.81% increase year-over-year. Such consistent growth in revenue is a positive sign reflecting the increasing market demand for MakeMyTrip’s services.

Net income for the last quarter stood at $27 million, showing a significant 51.35% rise from the previous quarter and an 11.37% increase year-over-year. This boost in net income demonstrates effective cost management and improved profitability.

EBITDA for the last quarter was $48 million, up by 19.84% quarter-on-quarter and 63.54% year-on-year. The substantial year-over-year growth in EBITDA highlights the company's efficiency and operational strength.

However, the current Price-to-Earnings (P/E) ratio is 61.09. This high P/E ratio may suggest that the stock is overvalued, leading to a potentially bearish outlook. Investors may need to be cautious as high P/E ratios can signal that stock prices might be inflated relative to earnings.

Technical Analysis

As of today, the stock price is $113.59, reflecting a 0.61% increase from a month ago, indicating a positive short-term trend. Over the past year, the stock has appreciated by 97.38%, suggesting a robust positive long-term trend.

The technical indicators are largely supportive of a bullish trend. The Simple Moving Average (SMA10) is currently at 113.44, higher than the previous SMA10 of 112.77, indicating potential upward momentum in price movement. The Relative Strength Index (RSI) stands at 54.9, suggesting a neutral condition with no immediate overbought or oversold signals.

Alternative Data Analysis

Alternative data also provides some interesting insights about MakeMyTrip. The company currently has 16 open positions on job boards, which is an 11% reduction over the last couple of months. This could indicate an effort to improve margins or cut costs, signaling potential financial strain or strategic reallocation of resources.

However, employee sentiment remains high, with 87% of employees expressing a positive outlook on the company’s future, a very healthy indicator.

Customer acquisition metrics present a mixed picture. The company's webpage sees an estimated 48 million visitors, up by 25% recently—a bullish trend indicating potential customer growth. Conversely, the daily app downloads are down by 9%, suggesting some concern regarding customer retention or acquisition through mobile platforms.

Customer engagement metrics are generally favorable. The company has 250,000 followers on Instagram, a 7% increase over the past couple of months, indicating growing interest. Twitter followers are stable at 130,000, suggesting no significant change in engagement on this platform.

Finally, MakeMyTrip's AI score for stock price prediction, provided by AltIndex, is 72, which signals a buy recommendation.

Conclusion

MakeMyTrip demonstrates strong financial performance with significant growth in revenue, net income, and EBITDA. Although the high P/E ratio suggests potential overvaluation, the stock trends are largely bullish with a positive outlook in both the short and long term. Alternative data analysis presents a mixed signal with improvements in website traffic and social media engagement but a slight downturn in mobile app downloads and job postings. Considering the overall analysis, MakeMyTrip appears to be a strong growth stock with positive market sentiment. Investors might find it to be a unique opportunity for gaining exposure in the fast-growing Indian travel market.

Disclaimer: This AI stock analysis, 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.