NASDAQ:MMYT, a strong growth stock, setting up for a breakout.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether MAKEMYTRIP LTD (NASDAQ:MMYT) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but MAKEMYTRIP LTD has surfaced on our radar for growth with base formation, warranting further examination.

Growth Assessment of 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 74.12%, which is quite impressive.
• MMYT shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.52%.
• 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 29.53% yearly.
• Based on estimates for the next years, MMYT will show a very strong growth in Revenue. The Revenue will grow by 21.85% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

ChartMill's Evaluation of Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:MMYT has earned a 8 out of 10:

• MMYT has an Altman-Z score of 11.94. This indicates that MMYT is financially healthy and has little risk of bankruptcy at the moment.
• MMYT has a better Altman-Z score (11.94) than 98.47% of its industry peers.
• MMYT has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as MMYT would need 2.77 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 2.77, MMYT belongs to the best of the industry, outperforming 81.68% of the companies in the same industry.
• A Debt/Equity ratio of 0.19 indicates that MMYT is not too dependend on debt financing.
• The Debt to Equity ratio of MMYT (0.19) is better than 78.63% of its industry peers.
• MMYT has a Current Ratio of 2.88. This indicates that MMYT is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 2.88, MMYT belongs to the top of the industry, outperforming 93.89% of the companies in the same industry.
• A Quick Ratio of 2.88 indicates that MMYT has no problem at all paying its short term obligations.
• MMYT has a better Quick ratio (2.88) than 96.18% of its industry peers.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:MMYT has earned a 5 out of 10:

• With an excellent Return On Assets value of 13.13%, MMYT belongs to the best of the industry, outperforming 90.08% of the companies in the same industry.
• With a decent Return On Equity value of 20.06%, MMYT is doing good in the industry, outperforming 79.39% of the companies in the same industry.
• With an excellent Profit Margin value of 25.42%, MMYT belongs to the best of the industry, outperforming 98.47% of the companies in the same industry.
• MMYT's Operating Margin of 12.44% is fine compared to the rest of the industry. MMYT outperforms 60.31% of its industry peers.
• With an excellent Gross Margin value of 71.67%, MMYT belongs to the best of the industry, outperforming 87.79% of the companies in the same industry.
• In the last couple of years the Gross Margin of MMYT has grown nicely.

How do we evaluate the setup for NASDAQ:MMYT?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:MMYT currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, MMYT also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 110.00. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 108.96, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for MMYT in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.