Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Wednesday, Goldman Sachs analyst Manish Adukia increased the price target on MakeMyTrip (NASDAQ:MMYT) to $126 from $124, while maintaining a Buy rating on the shares. The adjustment follows MakeMyTrip’s report of another quarter of strong growth, with a revenue increase of 28% year-over-year (YoY) in the fourth quarter, marking an acceleration from the 26% YoY growth seen in the third quarter. The company’s performance was attributed to robust underlying travel trends, particularly in outbound travel, which were further supported by spiritual travel during the fourth quarter. According to InvestingPro data, the company maintains impressive gross profit margins of 54.5% and has achieved a market capitalization of $11.4 billion, though current analysis suggests the stock may be trading above its Fair Value.
MakeMyTrip anticipates revenue growth to exceed 20% for the foreseeable future and does not expect any significant headwinds to demand. The firm’s profitability has also shown improvement, which is attributed to operating leverage and a sustained benign competitive environment. According to Adukia’s commentary, MakeMyTrip’s recent financial results indicate that travel demand has remained largely unaffected by any slowdown in discretionary spending. InvestingPro analysis reveals the company’s strong financial health with a "GREAT" overall score of 3.23, supported by robust liquidity metrics and a current ratio of 2.88.
The analyst projects that MakeMyTrip’s revenues will grow at a compound annual growth rate (CAGR) of 20% from fiscal year 2025 to 2027, with operating leverage in the business driving a 42% EBITDA CAGR over the same timeframe. The revised 12-month target price of $126 implies an 18% upside from the current levels.
Adukia’s outlook is based on the expectation that lower tax rates will further aid travel growth. The firm’s analysis suggests that MakeMyTrip is well-positioned to capitalize on the current market conditions and continue its growth trajectory in the coming years.
In other recent news, MakeMyTrip Limited reported impressive fourth-quarter results, exceeding analyst expectations. The company saw a 21% increase in revenue year-over-year, reaching $245.5 million, driven by growth across all segments. Adjusted earnings per share came in at $0.42, surpassing analyst estimates. Gross bookings, a critical industry metric, rose by 25.2% to $2.55 billion during the quarter. Segment-wise, air ticketing revenue increased by 11.9% to $61.6 million, while hotels and packages revenue grew by 16.9% to $123.3 million. Bus ticketing revenue saw a significant jump of 40.8%, totaling $33.5 million compared to the previous year. The company’s adjusted operating profit improved to $44.7 million, up from $32.4 million a year ago. For the full fiscal year 2025, MakeMyTrip reported a revenue increase of 25% to $978.3 million and an adjusted net profit rise to $178.2 million from $137.2 million in fiscal 2024.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.