MakeMyTrip Price Target Cut to $96 After Q3 Volume Soars 20%
On Jan. 21, Citi cut MakeMyTrip’s price target from $108 to $96 while retaining Buy rating, citing conservative margin assumptions despite solid underlying growth. In Q3, accommodation volume rose 20.3% YoY, hotel bookings climbed 20.6%, and $46.1m was deployed under a $200m buyback program with $100m cash.
1. Price Target Adjustment
On January 21, Citi lowered MakeMyTrip’s price target to $96 from $108 and kept a Buy rating, citing revised margin assumptions but affirming solid underlying growth and an attractive valuation.
2. Q3 Performance Highlights
In the third quarter, accommodation volume rose 20.3% year-over-year, standard hotel bookings climbed 20.6%, and non-premium room nights expanded over 23%. Tours and activities now exceed 200,000 experiences across 1,100 cities, while accommodations list more than 97,000 options in 2,050 cities.
3. Capital Allocation and Financial Position
The company deployed approximately $46.1 million under its buyback program and increased total authorization to $200 million. It closed the quarter with over $100 million in cash equivalents, bolstering financial flexibility.
4. Outlook and Valuation
Strong leisure demand growth, expanded product offerings, and disciplined capital returns underpin a constructive long-term outlook, positioning MakeMyTrip to capture continued growth in India’s travel and tourism market.