MMYT Should I Buy
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MakeMyTrip Ltd is not a strong buy for a beginner, long-term investor at this moment. While the company has positive growth potential and attractive valuation according to analysts, the recent financial performance shows significant declines in net income and EPS. Additionally, technical indicators suggest bearish trends, and there are no strong proprietary trading signals or significant catalysts to justify immediate action.
The MACD is positive but contracting, indicating weakening momentum. RSI is neutral, providing no clear signal. Moving averages are bearish (SMA_200 > SMA_20 > SMA_5), and the stock is trading near its support level of 55.044. The stock has an 80% chance of minor short-term gains (0.17% in the next day, 1.76% in the next week) but a potential -5.73% drop in the next month.
The partnership with OpenAI to enhance AI-driven travel planning and the Myra assistant's increasing engagement in Tier-2 and smaller cities are promising developments. The company's expansion into the UAE and Saudi Arabia also highlights growth potential.
Q3 financials show a significant drop in net income (-73.18% YoY) and EPS (-69.57% YoY), raising concerns about profitability. Gross margin also declined slightly. Analysts have lowered price targets, citing modest margin assumptions.
In Q3 2026, revenue increased by 10.59% YoY to $295.69M, but net income dropped by 73.18% YoY to $7.25M. EPS fell by 69.57% YoY to $0.07, and gross margin declined slightly to 67.93%.
Analysts maintain Buy and Overweight ratings but have lowered price targets (Citi: $96, Morgan Stanley: $106, BofA: $113). They cite solid growth but moderate margin expectations due to challenging circumstances and external disruptions.
