Is NASDAQ:MMYT on the Verge of a Major Breakout as a Strong Growth Stock?

Last update: Jul 2, 2024

In this article, we'll take a closer look at MAKEMYTRIP LTD (NASDAQ:MMYT) as a potential candidate for growth investing. While it's important for investors to conduct their own research, MAKEMYTRIP LTD has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Assessing Growth for NASDAQ:MMYT

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:MMYT boasts a 8 out of 10:

MMYT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1766.67%, which is quite impressive.
MMYT shows a strong growth in Revenue. In the last year, the Revenue has grown by 31.95%.
The Revenue has been growing by 9.99% on average over the past years. This is quite good.
MMYT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.95% yearly.
The Revenue is expected to grow by 21.04% on average over the next years. This is a very strong growth
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Understanding NASDAQ:MMYT's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:MMYT has earned a 8 out of 10:

An Altman-Z score of 10.13 indicates that MMYT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.13, MMYT belongs to the top of the industry, outperforming 99.25% of the companies in the same industry.
MMYT has a debt to FCF ratio of 1.76. This is a very positive value and a sign of high solvency as it would only need 1.76 years to pay back of all of its debts.
MMYT has a Debt to FCF ratio of 1.76. This is amongst the best in the industry. MMYT outperforms 83.58% of its industry peers.
MMYT has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, MMYT is in the better half of the industry, outperforming 78.36% of the companies in the same industry.
A Current Ratio of 2.88 indicates that MMYT has no problem at all paying its short term obligations.
MMYT has a Current ratio of 2.88. This is amongst the best in the industry. MMYT outperforms 94.03% of its industry peers.
MMYT has a Quick Ratio of 2.88. This indicates that MMYT is financially healthy and has no problem in meeting its short term obligations.
MMYT has a better Quick ratio (2.88) than 94.78% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:MMYT was assigned a score of 5 for profitability:

MMYT has a Return On Assets of 13.06%. This is amongst the best in the industry. MMYT outperforms 88.06% of its industry peers.
The Return On Equity of MMYT (19.52%) is better than 74.63% of its industry peers.
Looking at the Profit Margin, with a value of 27.71%, MMYT belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
MMYT has a Gross Margin of 72.51%. This is amongst the best in the industry. MMYT outperforms 84.33% of its industry peers.
MMYT's Gross Margin has improved in the last couple of years.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:MMYT scores a 7 out of 10:

Besides having an excellent technical rating, MMYT also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 81.02, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of MMYT

Check the latest full technical report of MMYT for a complete technical analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.