MMYT - MakeMyTrip: Sales Growth Remains Impressive But Watching Customer Inducement Costs

2024-02-08 22:12:35 ET

Summary

• MakeMyTrip Limited has the potential for further growth going forward.
• Q3 2024 earnings showed impressive revenue growth and a rise in overall revenue on a year-on-year basis.
• Gross bookings are up, and liquidity remains strong, but the rising P/E ratio indicates that price is outpacing earnings growth.
• I will be monitoring customer inducement growth across the Hotels and Packages segment more closely heading into the next quarter.

Investment Thesis

I take the view that MakeMyTrip Limited has potential upside to $77 based on continued sales growth, but will be monitoring growth in customer inducement costs across the Hotels and Packages segment....

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