Investors' 'fear of missing out' may be driving share price performance, overshadowing revenue growth. The recent improvement in total shareholder return could indicate the business is improving over time.
Despite a lower ROE, MakeMyTrip's significant net income growth and reinvestment strategy are seen positively. The company's earnings growth is expected to continue at a similar rate.
MakeMyTrip's high P/S ratio is justified by its promising revenue outlook, with investors expecting robust future growth. These strong revenue forecasts should keep the share price buoyant unless the analysts have really missed the mark.
MakeMyTrip has shown impressive capital allocation skills, yielding higher returns from less capital. The stock's solid 94% return over the past five years suggests investors are acknowledging these changes. If these trends continue, MakeMyTrip could have a promising future.
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