Evaluating MakeMyTrip (MMYT) After India Listing Plans Via Indian Depository Receipts

MakeMyTrip (MMYT) is drawing fresh attention as it weighs listing its Indian arm through Indian Depository Receipts instead of a traditional domestic IPO, a move aimed at addressing tax considerations while broadening local capital access.

See our latest analysis for MakeMyTrip.

These IDR discussions come after MakeMyTrip reiterated on 16 March that it is considering an India listing for its consolidated local business. They arrive during a period where the stock has a 1-month share price return of 20.98% but a year-to-date share price return decline of 41.14%, while the 3-year total shareholder return is 90.51% and the 5-year total shareholder return is 87.99%, which together indicate long-term gains despite more recent pressure.

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So with a recent 1 month gain of 20.98% but a year to date decline of 41.14%, plus long term total returns still in positive territory, is MakeMyTrip undervalued today, or is the market already pricing in future growth?

Most Popular Narrative: 45.3% Undervalued

Analysts following MakeMyTrip see fair value at $88.10 versus the last close of $48.20. That gap is anchored to a detailed long term earnings and margin story.

Ongoing investment in product innovation, particularly in AI-powered personalization and user experience improvements, positions MakeMyTrip for higher conversion rates, better customer retention, and ultimately supports expanding net margins through improved operating leverage.

Read the complete narrative.

Curious what has to happen for that valuation to hold up? The narrative leans on brisk revenue growth, rising profitability and a premium future earnings multiple. The exact mix of those three is what really matters.

Result: Fair Value of $88.10 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this upside case can unravel quickly if competition squeezes commissions or if customer acquisition costs remain high enough to cap margin progress.

Find out about the key risks to this MakeMyTrip narrative.

Another View: Expensive On Earnings

The analyst narrative points to a fair value of $88.10, yet the current P/E of 80.6x sits well above both the US Hospitality average of 21.6x and an estimated fair ratio of 54.8x. That kind of gap suggests valuation risk if sentiment or growth expectations cool.

To see what the numbers say about this price, check the valuation breakdown in See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of potential upside and clear risks leaves you undecided, move quickly to review the full picture yourself with 1 key reward and 3 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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