MakeMyTrip Stock Surges 139%: Earnings Acceleration Drives Growth

MakeMyTrip, an India-based online travel firm, has witnessed a remarkable 139% run in 2024, driven by strong earnings growth and expansion in services. The company's earnings have grown by an average of 52% over the past three quarters, with EPS accelerating from 30% to 44% in the most recent quarter. This impressive performance has qualified MakeMyTrip as an IBD Sector Leader and positioned it for further gains.

MakeMyTrip's success can be attributed to several factors, including its strong domestic and international leisure travel capabilities, expansion of channel capabilities, and a benign competitive environment. The company's diverse offerings, ranging from airline tickets to hotel reservations, have allowed it to tap into various segments of the travel market and capitalize on the resilient travel demand in India.

Citi analyst Vijit Jain highlighted the growth tailwinds for MakeMyTrip, such as the easing of supply-side constraints in the domestic market and improving low-cost connectivity in air travel. Additionally, the company's initiatives to expand channel capabilities and increase direct contracting with international hotels have contributed to its steady expansion of margins and profitability.

Institutional support has also played a significant role in MakeMyTrip's success. The company has seen an increase in exposure from institutions, with its Accumulation/Distribution Rating sitting at B. The highly rated Lord Abbett Developing Growth Fund is among the noteworthy holders, indicating strong support from institutional investors.



MakeMyTrip's earnings growth of 52% over the past three quarters compares favorably to its peers in the online travel industry. For instance, Yatra Online's EPS growth over the same period was around 30%, lower than MakeMyTrip's impressive performance. This acceleration in earnings can be attributed to MakeMyTrip's strong platform, diverse offerings, and strategic initiatives.

As the travel industry recovers from the COVID-19 pandemic, MakeMyTrip has been well-positioned to capitalize on the increased demand for travel services. The company's strong platform and diverse offerings have allowed it to attract more customers and generate higher earnings, driving its stock price to new highs.



In conclusion, MakeMyTrip's 139% run in 2024 has been driven by strong earnings growth, expansion in services, growth tailwinds, and a benign competitive environment. The company's impressive performance has positioned it as an IBD Sector Leader and an attractive investment opportunity in the online travel industry. As the travel industry continues to recover, MakeMyTrip is well-positioned to capitalize on the growing demand for travel services and generate further growth for its shareholders.