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MakeMyTrip - AI Stock Analysis
Analysis generated January 16, 2025
MakeMyTrip Limited (NASDAQ: MMYT) is a leading online travel company in India, providing a wide range of services including flight and hotel bookings, holiday packages, rail and bus services, and car rentals. Founded in 2000, the company has established itself as a dominant player in India's travel industry, leveraging its strong brand recognition and broad offerings. With its technology-driven approach, MakeMyTrip has been able to cater to the evolving needs of travelers, offering convenience and competitive pricing.
Fundamental Analysis
The latest financial reports show a mix of encouraging and concerning trends for MakeMyTrip. Revenue for the last quarter was $211M, which represents a decrease of 17.10% from the previous quarter. This reduction indicates potential issues in sustaining short-term growth. However, compared to the same quarter last year, the revenue increase of 25.08% demonstrates positive year-over-year growth, underlining a strong recovery or growth over a longer timeline.
Net income stands at $18M for the last quarter, showing a decrease of 15.11% compared to the prior quarter. Despite this short-term decline, the year-over-year increase of 762.05% in net income points to significant long-term improvements in profitability.
The EBITDA for the last quarter was $40M, marking an increase of 16.34% over the previous quarter, which is a positive sign of ongoing operational efficiency. Compared with the same quarter last year, there is an increase of 112.60%, indicating robust year-over-year growth in earnings.
With a current P/E ratio of 55.32, MakeMyTrip's stock appears to be overvalued, potentially reflecting a bearish sentiment among investors.
Technical Analysis
The current stock price of MakeMyTrip is $105.10, which shows a decrease of 10.42% compared to a month ago. This recent drop might be concerning for short-term investors. However, compared to the same time a year ago, the price has increased by 121.40%, indicating a highly positive long-term trend.
Despite this, the trend is currently bearish. The SMA10 is now 107.03, which is lower than the previous SMA10 of 108.32, suggesting a continuing downward trend. Additionally, the Relative Strength Index (RSI) stands at 82.5, indicating an overbought condition, which could foresee further bearish movements ahead.
Alternative Data Analysis
Job postings and employee sentiment provide mixed insights. MakeMyTrip currently has 17 open positions, a decrease of 29% in the last couple of months, possibly indicating cost-cutting efforts rather than expansion. Nevertheless, employee sentiment remains high, with 86% of employees having a positive outlook, which is encouraging.
Customer acquisition metrics show a bullish trend with an estimated 48 million visitors to the MakeMyTrip website, a 25% increase over the past few months. However, the number of mobile app downloads has decreased by 26% over the same period, a potential sign of waning customer interest.
Regarding customer engagement, MakeMyTrip has 250,000 followers on Instagram, a 5% increase, indicating growing social media interest. On Twitter, the follower count is stable at 130,000.
According to AltIndex's AI score, MakeMyTrip has an AI score of 61, suggesting a buy signal based on a composite of fundamental, technical, and alternative data analysis.
Conclusion and Recommendation
MakeMyTrip Limited presents a mix of strong long-term growth potential and short-term challenges. The company has shown significant year-over-year growth in revenue and profitability but faces short-term declines in both metrics. Technical indicators suggest a current bearish trend with the stock potentially being overvalued, as indicated by the high P/E ratio and elevated RSI.
While there are concerns on the expansion and mobile app user front, the increase in website visitors and positive employee sentiment are promising. Given the balanced assessment of fundamental, technical, and alternative data—along with the AI score recommending a buy position—the stock could be considered for long-term investment, albeit with caution regarding short-term market volatility.
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.
