MakeMyTrip Ltd (MMYT, Financial), an online travel company, has seen a significant surge in its stock price over the past three months. The company's market cap currently stands at $4.35 billion, with a stock price of $40.98. Over the past week, the stock has gained 8.73%, and over the past three months, it has seen a substantial gain of 21.57%. However, the GF Value, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, is currently at $58.33, compared to the past GF Value of $51.58. This suggests a possible value trap, both currently and three months ago, indicating that investors should think twice before investing.
Introduction to MakeMyTrip Ltd (MMYT, Financial)
MakeMyTrip Ltd operates in the Travel & Leisure industry, providing online booking solutions for day-to-day travel needs. The company's operating segments include Air ticketing, Hotels and packages, Bus ticketing, and Others. The majority of its revenue is generated from the Hotels and packages segment, which includes internet-based platforms, call-centers, and branch offices that provide holiday packages and hotel reservations. Its Air ticketing segment includes internet-based platforms that provide the facility to book domestic and international air tickets. Geographically, it derives a majority of revenue from India and also has a presence in the United States, South East Asia, Europe, and other countries. 
Profitability of MakeMyTrip Ltd (MMYT, Financial)
As of September 30, 2023, MakeMyTrip Ltd has a Profitability Rank of 2/10, indicating that it is less profitable than many of its peers. The company's Operating Margin is 5.72%, which is better than 46.89% of 821 companies in the same industry. In terms of return on equity (ROE), return on assets (ROA), and return on invested capital (ROIC), the company has percentages of 3.00%, 1.90%, and 4.05% respectively, which are better than many other companies in the industry. 
Growth of MakeMyTrip Ltd (MMYT, Financial)
MakeMyTrip Ltd's Growth Rank is currently at 2/10, indicating that its growth is lower than many of its peers. The company's 3-year revenue growth rate per share is 3.60%, which is better than 61.41% of 767 companies in the same industry. However, its 5-year revenue growth rate per share is -10.20%, which is better than only 37.33% of 718 companies in the industry. 
Holders of MakeMyTrip Ltd (MMYT, Financial) Stock
The top three holders of MakeMyTrip Ltd's stock are Baillie Gifford (Trades, Portfolio), with a 2.13% share, Sarah Ketterer (Trades, Portfolio), with a 0.21% share, and Paul Tudor Jones (Trades, Portfolio), with a 0.09% share.
Competitors of MakeMyTrip Ltd (MMYT, Financial)
MakeMyTrip Ltd faces competition from several companies in the Travel & Leisure industry. These include Travel+Leisure Co (TNL, Financial) with a market cap of $2.53 billion, Norwegian Cruise Line Holdings Ltd (NCLH, Financial) with a market cap of $5.58 billion, and TripAdvisor Inc (TRIP, Financial) with a market cap of $2.23 billion.
Conclusion
In conclusion, MakeMyTrip Ltd has seen a significant surge in its stock price over the past three months. However, its GF Value suggests a possible value trap, indicating that investors should think twice before investing. The company's profitability and growth are lower than many of its peers, and it faces competition from several companies in the Travel & Leisure industry. Therefore, investors should carefully consider these factors before investing in MakeMyTrip Ltd.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
