| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 57.05 | -40 |
| Intrinsic value (DCF) | 327.78 | 246 |
| Graham-Dodd Method | 10.00 | -89 |
| Graham Formula | 27.07 | -71 |
MakeMyTrip Limited (NASDAQ: MMYT) is a leading online travel company specializing in travel products and solutions across India and key international markets, including the U.S., Southeast Asia, and the Middle East. Operating through its three core segments—Air Ticketing, Hotels and Packages, and Bus Ticketing—MakeMyTrip offers a comprehensive suite of services, including flight bookings, hotel reservations, holiday packages, rail and bus tickets, car rentals, and ancillary travel services like visa processing and travel insurance. The company leverages a multi-channel distribution network, including its flagship websites (makemytrip.com, goibibo.com, redbus.in), mobile platforms, call centers, and a franchisee-owned travel store network. With a strong foothold in India’s rapidly growing online travel market, MakeMyTrip caters to both leisure and corporate travelers, capitalizing on digital adoption and rising disposable incomes. Headquartered in Gurugram, India, the company has demonstrated resilience post-pandemic, benefiting from pent-up travel demand and a shift toward online booking platforms.
MakeMyTrip presents a compelling investment opportunity as a dominant player in India’s high-growth online travel sector, supported by strong revenue recovery post-COVID and improving profitability (FY2024 net income: $216.8M). The company benefits from secular tailwinds, including increasing internet penetration, smartphone adoption, and a burgeoning middle class. However, risks include intense competition from global and regional players, currency fluctuations, and macroeconomic sensitivity in the cyclical travel industry. The company’s asset-light model and strong cash position ($327.1M) provide financial flexibility, but its lack of dividends may deter income-focused investors. Valuation multiples should be weighed against growth prospects in a fragmented but expanding market.
MakeMyTrip holds a competitive edge in India’s online travel market through its localized platform, strong brand recognition, and diversified service offerings. Its acquisition of Goibibo and RedBus has solidified its dominance in bus ticketing and budget travel segments. The company’s proprietary technology stack enables dynamic pricing and personalized recommendations, enhancing user engagement. However, it faces stiff competition from global giants like Booking Holdings and Expedia, which have deeper pockets and broader international inventories. MakeMyTrip’s focus on the Indian market is both a strength (localized customer support, partnerships with domestic hotels) and a limitation (limited global scale). Its asset-light model reduces operational risks but relies heavily on third-party suppliers. The company’s ability to maintain high-margin ancillary sales (e.g., travel insurance) and expand into underserved Tier-2/3 Indian cities will be critical to sustaining its leadership position.