MakeMyTrip (MMYT, Financial) shares fell nearly 8% in premarket trading after Trip.com announced it would sell a portion of its Class B ordinary shares in MakeMyTrip back to the company for cancellation. This move is part of Trip.com's strategy to refine its investment portfolio and boost shareholder value. Despite the share sale, Trip.com will still hold a significant minority stake in MakeMyTrip and plans to continue backing its expansion.
To facilitate the share repurchase, MakeMyTrip is issuing convertible senior notes under Rule 144A of the U.S. Securities Act of 1933, alongside a public offering of ordinary shares. The company has agreed to a 180-day lock-up period with some exceptions. This strategic financial maneuvering underscores MakeMyTrip's continued efforts to strengthen its financial structure and growth trajectory.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for MakeMyTrip Ltd (MMYT, Financial) is $122.07 with a high estimate of $135.00 and a low estimate of $110.00. The average target implies an upside of 21.00% from the current price of $100.88. More detailed estimate data can be found on the MakeMyTrip Ltd (MMYT) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, MakeMyTrip Ltd's (MMYT, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MakeMyTrip Ltd (MMYT, Financial) in one year is $100.12, suggesting a downside of 0.75% from the current price of $100.88. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MakeMyTrip Ltd (MMYT) Summary page.
MMYT Key Business Developments
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MakeMyTrip Ltd (MMYT, Financial) achieved a record performance in fiscal year 2025 with a gross booking value of $9.8 billion, marking a 25.9% year-on-year growth in constant currency terms.
- The company reported an all-time high adjusted operating profit of $167.3 million, reflecting a 34.7% year-on-year increase.
- MakeMyTrip Ltd (MMYT) expanded its user base significantly, adding over 9 million new customers, with a strong penetration into tier 2 and tier 3 towns in India.
- The international business segment showed robust growth, with international air ticketing revenue increasing by over 33% and international hotels revenue growing by over 65% year-on-year.
- The company has successfully integrated AI-driven features across its platform, enhancing user experience with tools like Myra.AI for trip planning and various generative AI-powered features for decision-making and customer support.
Negative Points
- The recent geopolitical tensions between India and Pakistan led to a noticeable dip in bookings, particularly affecting the northern region of India.
- Despite strong growth, the domestic air market supply growth was slower than expected, at about 9.5% year-on-year.
- The company faces potential competition from new entrants leveraging generative AI, which could pose a threat to its market position.
- MakeMyTrip Ltd (MMYT) is operating in a highly competitive market with both traditional and digital competitors, which could impact its market share.
- The company has not yet reached the lower end of its medium-term margin guidance of 1.8% to 2%, indicating room for improvement in operational efficiency.
