Update shared on 29 Oct 2025
Fair value Decreased 2.11%Analysts have reduced their fair value estimate for MakeMyTrip from $121 to $118.44 per share, citing slightly lower expectations for revenue growth and profit margins. This comes despite continued optimism about the company's long-term positioning.
Analyst Commentary
Recent updates from the analyst community offer a nuanced view of MakeMyTrip's prospects, reflecting both prevailing optimism and lingering concerns regarding the company's performance and valuation.
Bullish Takeaways- Bullish analysts see the company's recent addition to a major conviction list as a signal of long-term growth potential and strong competitive positioning.
- Temporary weakness in domestic air travel is viewed as a short-term headwind rather than a structural issue. This presents a potential entry point for new investors.
- Consensus remains that the company is well-positioned to capitalize on future recovery in the travel sector, which could support upward momentum in revenue growth over time.
- Analysts emphasize MakeMyTrip's ongoing execution in key markets, which supports confidence in the company's ability to deliver on its strategic plans and to maintain attractive margins over the longer term.
- Bearish analysts point to recent underperformance in the stock, primarily tied to softness in domestic air travel, as a risk to near-term revenue and growth forecasts.
- Concerns remain regarding the sustainability of margins if sector recovery is slower than anticipated or if competition intensifies further in core markets.
- Some analysts caution that the lowered fair value estimate could signal a more modest growth trajectory, at least in the short to medium term.
- Ongoing volatility within the travel sector may pose challenges to execution and could impact the company's valuation if macroeconomic conditions do not improve as expected.
What's in the News
- Dipak Bohra has been appointed as Group Chief Financial Officer, bringing over 30 years of finance experience to the role. Mohit Kabra will transition to Group Chief Operating Officer and will oversee company-wide operational strategies (Key Developments).
- The company has launched a GenAI-enabled Trip Planning Assistant, expanding Myra's capabilities to provide conversational support in English and Hindi. This assistant will help users through all travel planning stages and enable seamless booking (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased from $121 to $118.44 per share, reflecting slightly more conservative expectations.
- Discount Rate has edged down marginally from 12.20% to 12.11%.
- Revenue Growth projections have declined from 22.19% to 21.12%.
- Net Profit Margin expectations have eased from 15.92% to 15.12%.
- Future P/E ratio has increased from 60.5x to 77.6x. This suggests a higher valuation multiple based on forward earnings.
Disclaimer
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