MMYT: MakeMyTrip Limited Ordinary Shares – What's Driving the Ride?

Stock Symbol: MMYT Generate Date: 2025-05-27 16:31:51

Let's break down what's been happening with MakeMyTrip and what it might mean for the stock.

The Latest Buzz: News & Sentiment

Recent news for MakeMyTrip has been a bit of a mixed bag, but with a generally positive lean.

First off, we saw Citigroup raise its price target for MakeMyTrip to $125 from $120, keeping a "Buy" rating. This is a strong vote of confidence from a major financial institution, suggesting they see more room for the stock to grow. That's definitely a good sign, and it often gets investors feeling optimistic.

However, there's also a piece of news about Indian travelers canceling trips to Turkey and Azerbaijan. This is due to those countries supporting Pakistan in a recent conflict. MakeMyTrip is a major Indian travel firm, so any shift in popular travel destinations could impact their bookings. While it's not a direct hit to the company's core operations, it's something to keep an eye on, as geopolitical events can sometimes ripple through the travel sector.

Finally, the company announced it would report its fiscal 2025 fourth-quarter and full-year results on May 14, 2025. Earnings reports are always a big deal. They can cause significant price swings depending on whether the results beat, meet, or miss expectations. This particular report has already happened, and the market's reaction to it would be baked into the recent price action.

Putting it all together, the analyst upgrade is a clear positive, while the geopolitical travel shift is a minor headwind. The earnings report was a key event that has now passed.

Checking the Price Tag: What the Stock's Been Doing

Looking at the last few months, MakeMyTrip's stock has seen some interesting moves. After a dip in early March, it generally climbed, hitting highs around $108-$112 in late April and early May. Then, around May 8th, there was a noticeable drop, with the price falling from around $108 to the mid-$90s, accompanied by a spike in trading volume. This kind of sharp drop often happens around significant news or before earnings.

Since that dip, the stock has been trying to recover. It bounced back into the $100-$105 range. As of today, May 27th, the stock is trading around $102.40. This puts it squarely in the middle of its recent trading range, showing it's trying to find its footing after that earlier volatility.

Now, let's look at what the AI model from AIPredictStock.com sees coming:

• Today's Prediction: 0.00% (Essentially flat for the rest of the day)
• Next Day's Prediction: +2.47%
• The Day after Next Day's Prediction: +3.60%

These predictions suggest a potential upward trend in the very near term.

The Road Ahead: Outlook & Strategy Ideas

Considering the positive analyst sentiment, the stock's recent attempt to recover from a dip, and the AI's forecast for modest near-term gains, the situation for MMYT seems to lean towards a "hold" or "accumulate on dips" perspective right now.

Here's why:

• Positive Analyst View: Citigroup's raised price target of $125 is a strong indicator of potential upside. The stock is currently well below that target, offering room to grow if the market agrees with the analyst's assessment.
• AI's Upward Gaze: The AI model predicts a positive movement over the next couple of days, which aligns with a more optimistic outlook.
• Recent Price Stability: After that sharp drop earlier in May, the stock has stabilized around the $100-$105 mark. This could be a new base.

Potential Entry Consideration: If you're thinking about getting in, the current price around $102-$103 could be an interesting area. The AI model's prediction of an upward trend from here, combined with the analyst's higher price target, makes this zone look like a potential entry point. A slight dip towards $101 or even $100 might offer an even better opportunity, as these levels have shown some support recently.

Potential Exit/Stop-Loss Consideration:

• Taking Profits: If the stock does move up as predicted, a target around $105.49 (as suggested by the recommendation data) or even higher towards the analyst's $125 target could be considered for taking some profits.
• Managing Risk (Stop-Loss): To protect against unexpected drops, setting a stop-loss order below a recent support level is a smart move. The recommendation data suggests $93.08. This level is below the recent low seen during the May 8th dip, offering a buffer while still limiting potential losses if the stock turns south.

Company Context

MakeMyTrip is a big player in the online travel space in India, operating under well-known brands like MakeMyTrip, Goibibo, and redBus. They cover everything from flights and hotels to bus tickets and car rentals. This means their business is directly tied to travel trends and consumer spending on leisure and corporate trips. The recent news about Turkey bookings, while minor, highlights how external factors can influence even large travel companies. Their P/E ratio is quite high at 52.51, which suggests investors are expecting significant future growth, but it also means the stock could be sensitive to any news that challenges those growth expectations.

Disclaimer: This analysis is based on the provided data and is for informational purposes only. It is not financial advice. Investing in stocks involves risks, and you could lose money. Always conduct your own thorough research and consider consulting with a qualified financial professional before making any investment decisions.