MakeMyTrip Limited (MMYT)MMYT

MakeMyTrip Limited: A Comprehensive Overview

Company Profile:

History and Background: MakeMyTrip Limited (MMYT) is a leading online travel company in India, founded in 2000. It initially focused on air ticketing but expanded its offerings to include hotels, holiday packages, rail tickets, and bus tickets. MMYT has a strong presence in the Indian market and has expanded its operations to international destinations.

Core Business Areas:

• Air Ticketing: MMYT offers domestic and international flight bookings through its website and mobile app.
• Hotels: MMYT provides bookings for over 500,000 hotels across India and international destinations.
• Holiday Packages: MMYT offers customized holiday packages for individuals and groups, including flights, hotels, sightseeing, and activities.
• Rail Tickets: MMYT facilitates online booking of train tickets for various routes across India.
• Bus Tickets: MMYT offers online booking of bus tickets for various routes across India.

Leadership and Corporate Structure: The company is led by Rajesh Magow, Group CEO & Co-Founder. Deep Kalra, the Executive Chairman & Co-Founder, provides strategic guidance. MMYT has a strong leadership team with extensive experience in the travel industry.

Top Products and Market Share:

Top Products:

• Flight Booking: MMYT is a leading player in online flight bookings in India, with a market share of over 30%.
• Hotels: MMYT has a strong presence in the online hotel booking market, with a market share of over 20%.
• Holiday Packages: MMYT is a major player in the online holiday package market, offering a wide range of customized packages.

Market Share:

• Global: MMYT holds a significant market share in the Indian online travel market, estimated to be around 40%.
• US: MMYT's presence in the US market is relatively small compared to its global and Indian market share.

Product Performance and Market Reception: MMYT's products have been well-received by the market, with positive reviews and high customer satisfaction ratings. The company's focus on innovation and user experience has contributed to its success.

Total Addressable Market:

The total addressable market for online travel in India is estimated to be over USD 50 billion, and it is expected to grow significantly in the coming years, driven by rising internet and smartphone penetration.

Financial Performance:

Recent Financial Statements:

• Revenue: MMYT's revenue for the fiscal year 2023 was INR 8,473 crores (USD 1.1 billion), an increase of 58% year-over-year.
• Net Income: The company's net income for FY2023 was INR 562 crores (USD 73 million), an increase of 230% year-over-year.
• Profit Margins: MMYT's profit margin has been improving in recent years, reaching 6.6% in FY2023.
• Earnings per Share (EPS): The company's EPS for FY2023 was INR 10.14, an increase of 190% year-over-year.

Cash Flow and Balance Sheet: MMYT has a healthy cash flow position and a strong balance sheet. The company's cash and equivalents stood at INR 1,745 crores (USD 225 million) at the end of FY2023.

Dividends and Shareholder Returns:

Dividend History: MMYT has a history of paying dividends, with a recent dividend yield of around 1%. The company's dividend payout ratio has been increasing in recent years.

Shareholder Returns: MMYT's stock has provided strong returns to investors in recent years. The company's stock price has increased by over 100% in the past year.

Growth Trajectory:

Historical Growth: MMYT has experienced strong historical growth, with revenue increasing at a CAGR of over 20% in the past five years.

Future Growth Projections: The company is expected to continue its growth trajectory in the coming years, driven by the rising demand for online travel in India. Industry analysts project MMYT's revenue to grow at a CAGR of over 15% in the next five years.

Recent Product Launches and Strategic Initiatives: MMYT has been actively investing in new product launches and strategic initiatives to drive growth. The company recently launched a new mobile app with enhanced features and user experience. MMYT has also partnered with various airlines and hotels to expand its offerings.

Market Dynamics:

Industry Trends: The online travel industry is experiencing strong growth, driven by factors such as rising internet and smartphone penetration, increasing disposable income, and growing preference for online bookings.

Demand-Supply Scenario: The demand for online travel is expected to continue to outpace supply in the coming years, creating opportunities for players like MMYT.

Technological Advancements: Technological advancements such as artificial intelligence (AI) and big data are playing a significant role in shaping the online travel industry. MMYT is actively investing in AI-based solutions to enhance its customer experience and operational efficiency.

Market Positioning: MMYT is well-positioned in the Indian online travel market, with a strong brand, wide product portfolio, and extensive distribution network. The company is also adapting to market changes and investing in new technologies to maintain its competitive edge.

Competitors:

Key Competitors:

• Yatra Online (YTRA)
• EaseMyTrip (EMTRIP)
• Goibibo (GOIBIBO)
• Cleartrip (CLEART)

Market Share Percentages:

• MakeMyTrip: 40%
• Yatra Online: 15%
• EaseMyTrip: 10%
• Goibibo: 10%
• Cleartrip: 5%

Competitive Advantages and Disadvantages:

Advantages:

• Strong brand recognition
• Wide product portfolio
• Extensive distribution network
• Strong financial performance
• Focus on innovation

Disadvantages:

• Intense competition
• Dependence on external factors such as economic conditions and travel trends

Potential Challenges and Opportunities:

Key Challenges:

• Intense competition from major players
• Rising fuel costs
• Economic slowdown
• Technological disruptions

Potential Opportunities:

• Expanding into new markets
• Developing new products and services
• Leveraging technology to enhance customer experience
• Strategic partnerships

Recent Acquisitions:

Acquisitions in the last 3 years:

• ITIL in 2021: MMYT acquired ITIL, a travel technology company, to strengthen its technology platform and enhance its capabilities in areas such as AI and big data.
• Trip Fabrik in 2020: MMYT acquired Trip Fabrik, a travel experiences platform, to expand its offerings in the holiday package segment.
• Ryde in 2019: MMYT acquired Ryde, a bus ticketing platform, to strengthen its presence in the bus ticketing market.

These acquisitions have helped MMYT expand its product portfolio, enhance its technology platform, and enter new market segments.

AI-Based Fundamental Rating:

Based on an AI-based analysis, MMYT receives a fundamental rating of 8 out of 10. This rating is supported by the company's strong financial performance, market-leading position in the Indian online travel market, and its focus on innovation and growth.

Sources and Disclaimers:

Sources:

• MakeMyTrip Limited Annual Report 2023
• MakeMyTrip Limited Investor Relations website
• Statista
• Market Research reports

Disclaimers:

• This analysis is for informational purposes only and should not be considered as investment advice.
• The information provided is based on publicly available data and may not be completely accurate.
• The AI-based fundamental rating is a subjective assessment and may vary based on different models and assumptions.
• Investors should conduct their own due diligence before making any investment decisions.