MakeMyTrip Reports Strong Bookings but Profit Declines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 21 Jan 26
Source: NASDAQ.COM
MakeMyTrip Ltd (MMYT) saw its stock drop by 8.34% after crossing below the 5-day SMA, despite reporting an 11% year-over-year increase in gross bookings for Q3.
The company's unadjusted profit fell to $7.3 million, down 73% year-over-year, primarily due to significant increases in income tax expenses and finance costs related to convertible notes. Although adjusted EPS of $0.52 exceeded market expectations by $0.10, concerns over high expenses affecting profitability led to a negative market reaction.
This decline in stock price reflects market apprehension despite the strong gross bookings growth, indicating that investors are cautious about the company's ability to manage costs effectively in a competitive environment.
Analyst Views on MMYT
Wall Street analysts forecast MMYT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MMYT is 118.00 USD with a low forecast of 113.00 USD and a high forecast of 123.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 62.060
Low
113.00
Averages
118.00
High
123.00
Current: 62.060
Low
113.00
Averages
118.00
High
123.00
About MMYT
MakeMyTrip Limited is an online travel provider. The Company's segments include Air Ticketing, Hotels and Packages, and Bus Ticketing. The Air ticketing segment provides the facility to book domestic and international air tickets through Internet-based platforms. The Hotels and packages segment provides holiday packages and hotel reservations through Internet-based platforms, call centers, and franchise stores. The Bus ticketing segment provides the facility to book domestic and international bus tickets through Internet-based platforms. Through its primary websites, such as www.makemytrip.com, www.goibibo.com, and www.redbus.in, and mobile platforms, travelers can research, plan and book a range of travel services and products in India, as well as overseas. The Company's services and products include air ticketing, hotels and packages, bus tickets, rail tickets, car hire, activities and experiences, and ancillary travel requirements. It also provides an inter-city car rental service.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
