MakeMyTrip Rises 41% in 6 Months: Should You Hold or Fold the Stock?

MakeMyTrip Limited MMYT shares have soared 40.5% in six months, outperforming the broader Zacks Computer and Technology sector’s return of 5.1%. Over the same time frame, it also outperformed its Internet - Delivery Services industry and competitors, including Yatra Online YTRA, Tripadvisor TRIP and  Mondee Holdings MOND.In the past six months, shares of YTRA have risen 13.1%, while shares of TRIP and MOND have plunged 21.8% and 98.5%, respectively. The industry appreciated 34.7% in the same time frame.MakeMyTrip's outperformance was steered by an immense surge in gross bookings value, which suggests that investors have faith in the company's portfolio of artificial intelligence (AI) and data science-driven products. Also, strong dedication toward innovation, fuelled by cutting-edge technology, to provide a unique customer experience are considered key catalysts for this outperformance.In the first half of fiscal 2025, MakeMyTrip reported $465.5 million in revenues, of which $118.6 million and $250 million came from air ticketing and hotels & packages, respectively. This suggests that India's strong demand for both domestic and international travel was the main factor driving the top-line growth. Importantly, this strong performance, along with a positive assessment of the long-term prospects of the Indian travel and tourism sector, has prompted MMTY to expand its supplier network and enhance customer service.MakeMyTrip Limited Price and Consensus MakeMyTrip Limited price-consensus-chart | MakeMyTrip Limited QuoteMMYT’s Fiscal Q3 2025 Promising OutlookThe Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $256.7 million, indicating a year-over-year rise of 19.8%.The Zacks Consensus Estimate for earnings is pegged at 44 cents per share, up by a penny over the past 60 days, indicating a year-over-year rise of 25.7%.MMYT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters with an average surprise of 41.7%.Robust Clientele Propels Top-Line GrowthMakeMy Trip is dedicated to implementing cutting-edge tactics that optimize its features and greatly expand the capabilities of its products. The organization has finished more than 60 integrations with top travel and expense management solution providers, such as Darwinbox, FastCollab, MyClaims and Zoho.Additionally, MakeMyTrip introduced online self-serve Human Resource Management System integrations, which improved travel expense management by linking more than 200 organizations.MMYT reached a significant milestone in October 2024 when it partnered with ICICI Bank of India to introduce a high-end co-branded credit card that was specially designed for the nation's aspirational travellers.The travel experience is enhanced by this MakeMyTrip ICICI Bank Credit Card, which offers limitless benefits that never expire. With its reward currency, myCash, which is worth rupee 1 in spendable money, it provides a special value. It provides 6% myCash for hotel reservations, 3% myCash for travel, vacations, taxis and buses, and 1% for other retail purchases.Also, MakeMyTrip's collaboration with LEGOLAND Malaysia Resorts in July 2024 to offer vacation packages that combine thrilling LEGO adventures with Malaysia's rich cultural experiences is also driving new customers.To promote Singapore as a top travel destination for Indians, MakeMyTrip teamed up with the Singapore Tourism Board ("STB") in April 2024. Together, they will start campaigns to increase inbound travel, while STB will use MakeMyTrip's insights to create customized vacation packages for Indian customers.Strong Implementation of AI to Aid MMYT’s ProspectsAs a key component of its growth strategy, MakeMyTrip is boldly leveraging the implementation and uptake of GenAI. One significant development was the launch of the chatbot Myra on its international flight funnel during the most recent quarter. Myra was relaunched this quarter by MMYT to enhance the hotel and homestay booking process by offering real-time support through the use of generative AI and years' worth of proprietary data, such as customer reviews. It is worth noting that the redBus app's AI deployment efforts have successfully handled pre-journey inquiries with a GenAI-based bot, increasing customer satisfaction and lowering the demand for customer support representatives by almost 45%. Nonetheless, weather-related hazards and macroeconomic difficulties are serious issues that could result in a sharp decline in sales growth, which would unavoidably hurt MMYT stock.Conclusion: Hold MMYT Stock for NowGiven its growing portfolio and diverse partner base, MakeMyTrip appears to have a promising future. However, ongoing macroeconomic issues, such as the prolonged inflationary environment and persistently high interest rates, could impair its financial performance in the short term.Moreover, MMYT has a Zacks Value Style Score of F, indicating a stretched valuation. The stock is trading at a premium with a forward 12-month Price/Sales of 11.61X compared with the industry’s 1.96X.The solid foundations and strategic development of MMYT make the stock worth holding at present. The company's strong portfolio and emphasis on innovation position it for growth once market conditions stabilize, even though it might not be a good investment at the current price. So, investors should wait for a better entry point to accumulate this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MakeMyTrip Limited (MMYT): Free Stock Analysis Report TripAdvisor, Inc. (TRIP): Free Stock Analysis Report Yatra Online, Inc. (YTRA): Free Stock Analysis Report Mondee Holdings, Inc. (MOND): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks