MakeMyTrip Story

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MMYT -- USA Stock  

USD 17.65  0.15  0.84%

MakeMyTrip Debt to Equity Ratio is comparatively stable at the moment as compared to the past year. MakeMyTrip reported Debt to Equity Ratio of 0.26 in 2019. Price to Book Value is likely to gain to 1.47 in 2020, whereas Earnings before Tax are likely to drop (459.3 M) in 2020. There are many examples of share prices decreasing after an abrupt shift in one of the primary indicators. Let's review some of MakeMyTrip's important ratios. We will evaluate why we are still confident in anticipation of a recovery. Will private investors continue to hold, or should we expect a sell-off?
Published over three weeks ago
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Should you pay attention to changing MakeMyTrip (NASDAQ:MMYT) fundamentals?
MakeMyTrip is UNDERVALUED at 17.38 per share with modest projections ahead. MakeMyTrip Limited has Sharpe Ratio of -0.0296, which conveys that the firm had -0.0296% of return per unit of risk over the last month. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. MakeMyTrip exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify MakeMyTrip Limited Downside Deviation of 4.21, mean deviation of 3.0, and Risk Adjusted Performance of 0.0791 to check out the risk estimate we provide.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include MakeMyTrip income statement, its balance sheet, and the statement of cash flows. Potential MakeMyTrip investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although MakeMyTrip investors may use each financial statement separately, they are all related. The changes in MakeMyTrip's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MakeMyTrip's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of MakeMyTrip fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of MakeMyTrip performance into the future periods or doing a reasonable stock valuation. The intrinsic value of MakeMyTrip shares is the value that is considered the true value of the share. If the intrinsic value MakeMyTrip is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares MakeMyTrip. Please read more on our fundamental analysis page.

Are MakeMyTrip Earnings Expected to grow?

The future earnings power of MakeMyTrip involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of MakeMyTrip factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. MakeMyTrip stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of MakeMyTrip expected earnings.

How MakeMyTrip utilizes its cash?

To perform a cash flow analysis of MakeMyTrip, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash MakeMyTrip is receiving and how much cash it distributes out in a given period. The MakeMyTrip cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. MakeMyTrip Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. MakeMyTrip reported Net Cash Flow from Operations of (112.73 Million) in 2019

MakeMyTrip Gross Profit

MakeMyTrip Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing MakeMyTrip previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show MakeMyTrip Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Breaking it down

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of MakeMyTrip is not uncomon. Institutional investor usually refers to an organization that invests money in MakeMyTrip on behalf of clients or other money managers. Buying and selling of large positions of MakeMyTrip stock by institutional investors can create supply and demand imbalances that result in sudden price moves of MakeMyTrip stock. Let's take a look at how the ownership of MakeMyTrip is distributed among investors.

Ownership Allocation

MakeMyTrip Limited maintains a total of sixty million three hundred thousand outstanding shares. The majority of MakeMyTrip outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in MakeMyTrip Limited to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in MakeMyTrip Limited. Please pay attention to any change in the institutional holdings of MakeMyTrip as this could imply that something significant has changed or about to change at the company. Also note that almost three million fifteen thousand invesors are currently shorting MakeMyTrip expressing very little confidence in its future performance.

Insiders
27.39%
Institutions
77.39%
Retail Investors-4.78
Insiders27.39
Institutions77.39

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. MakeMyTrip has an asset utilization ratio of 127.57 percent. This implies that the company is making $1.28 for each dollar of assets. An increasing asset utilization means that MakeMyTrip Limited is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
679.3 M
Goodwill
604.6 M
Current Assets282.54 Million17.57
Assets Non Current679.29 Million42.24
Goodwill604.59 Million37.6
Tax Assets41.65 Million2.59

Will price continue to gain in September 2020?

Newest variance is at 16.75. MakeMyTrip Limited shows above-average downside volatility for the selected time horizon. We advise investors to inspect MakeMyTrip Limited further and ensure that all market timing and asset allocation strategies are consistent with the estimation of MakeMyTrip future alpha.

Whereas few other entities in the travel services industry are either recovering or due for a correction, MakeMyTrip may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 21st of August 2020, we see that MakeMyTrip responds to the market. The firm is undervalued with very small probability of distress within the next 24 months. Our primary 30 days buy-hold-sell recommendation on the firm is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of MakeMyTrip Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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