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

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if MAKEMYTRIP LTD (NASDAQ:MMYT) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted MAKEMYTRIP LTD showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Unpacking NASDAQ:MMYT's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:MMYT has earned a 8 for growth:

• MMYT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 617.28%, which is quite impressive.
• Looking at the last year, MMYT shows a very strong growth in Revenue. The Revenue has grown by 29.88%.
• Measured over the past years, MMYT shows a quite strong growth in Revenue. The Revenue has been growing by 9.99% on average per year.
• Based on estimates for the next years, MMYT will show a very strong growth in Earnings Per Share. The EPS will grow by 30.48% on average per year.
• Based on estimates for the next years, MMYT will show a very strong growth in Revenue. The Revenue will grow by 21.57% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Analysis for NASDAQ:MMYT

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:MMYT, the assigned 8 reflects its health status:

• An Altman-Z score of 11.13 indicates that MMYT is not in any danger for bankruptcy at the moment.
• MMYT has a better Altman-Z score (11.13) than 99.26% of its industry peers.
• MMYT has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.51, MMYT belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
• MMYT has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
• MMYT's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. MMYT outperforms 77.78% of its industry peers.
• MMYT has a Current Ratio of 2.78. This indicates that MMYT is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 2.78, MMYT belongs to the best of the industry, outperforming 94.07% of the companies in the same industry.
• MMYT has a Quick Ratio of 2.77. This indicates that MMYT is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 2.77, MMYT belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.

Profitability Examination for NASDAQ:MMYT

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:

• Looking at the Return On Assets, with a value of 12.66%, MMYT belongs to the top of the industry, outperforming 87.41% of the companies in the same industry.
• With a decent Return On Equity value of 19.23%, MMYT is doing good in the industry, outperforming 77.78% of the companies in the same industry.
• MMYT's Profit Margin of 26.11% is amongst the best of the industry. MMYT outperforms 97.04% of its industry peers.
• The Gross Margin of MMYT (71.37%) is better than 85.19% of its industry peers.
• MMYT's Gross Margin has improved in the last couple of years.

How does the Setup look for NASDAQ:MMYT

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:MMYT currently has a 7 as setup rating:

MMYT has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. We notice that large players showed an interest for MMYT in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

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

Our latest full technical report of MMYT contains the most current technical analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.