MakeMyTrip (MMYT): the Indian online travel gem
2026-07-07 · By Lubin Danilo, founder of Lubin Investment
MMYT: see the full analysis on Lubin Investment
MakeMyTrip, the dominant online travel booking platform in India, passes 9 of the 10 criteria in my screener. It reports earnings on July 28. Its valuation, roughly 39 times its free cash flow, reflects high growth expectations driven by India's booming domestic tourism.
Key takeaways
- MakeMyTrip passes 9 of the 10 criteria in my screener and reports first fiscal quarter earnings on July 28.
- The company dominates online travel booking in India (flights, hotels, vacation packages), a market driven by India's rapidly growing middle class.
- The stock trades at roughly 39 times its free cash flow, a level that assumes strong, durable growth.
- It's a small/mid cap (roughly $5 billion), with the volatility and liquidity that come with that profile.
What MakeMyTrip does
MakeMyTrip is the dominant online travel booking platform in India, letting users book flights, hotels, trains, and vacation packages through an app and website. The Indian online travel market remains underpenetrated compared to Western markets, offering structural growth potential driven by rising purchasing power and growing smartphone adoption for bookings.
Solid financial quality
MakeMyTrip passes 9 of the 10 criteria in my screener, with very negative net debt (the company holds far more cash than debt) and a 47.8% cash return on invested capital. That's a reassuring combination for a company operating in travel, a historically cyclical sector sensitive to macroeconomic shocks (pandemics, economic crises).
A valuation betting on the durability of growth
At a P/FCF of roughly 38.7, MakeMyTrip trades at a level that assumes sustained growth for many years, consistent with the structural potential of India's online travel market. This isn't a discounted stock: it's a bet on the duration and scale of that growth, a different profile from the low-valuation theses I usually document.
The moat: scale and brand trust in India
MakeMyTrip's moat comes from its already-established leadership position in the Indian market, with brand recognition and trust built over years with Indian consumers, in a market where trust in online payment remains a barrier for new entrants. Its scale also lets it negotiate better terms with hotels and airlines than smaller competitors.
Risks to know
The Indian online travel market attracts growing competition from international (Booking, Expedia) and local platforms, which could compress margins over time. The travel sector also remains structurally exposed to macroeconomic or health shocks capable of sharply reducing demand, a risk financial analysis alone can't eliminate. Finally, its modest size implies potentially higher volatility than an established large cap.
What to watch on July 28
Beyond earnings per share, I'll watch booking growth and the share of international tourism in the mix, a segment generally more profitable than domestic travel.
What I take away from this
MakeMyTrip combines solid financial quality with structural exposure to India's growing middle class, at a price that already reflects these expectations rather than ignoring them. The central question before investing isn't the company's quality, but conviction about the duration of this growth in a still-young market.
FAQ
When does MakeMyTrip report earnings?
On July 28, 2026.
Is MakeMyTrip a quality company?
Yes, it passes 9 of the 10 criteria in my screener, with very negative net debt and a 47.8% return on invested capital.
Is MakeMyTrip expensive on the stock market?
It trades at roughly 39 times its free cash flow, a level that assumes strong, durable growth rather than a discount.
What is the main risk with MakeMyTrip?
Growing competition from international and local platforms, plus the travel sector's structural exposure to macroeconomic or health shocks.
Is MakeMyTrip a large or small cap?
It's a small/mid cap of roughly $5 billion, with potentially higher volatility than an established large company.
MMYT: see the full analysis on Lubin Investment
About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I find fundamental analysis fascinating, and it has delivered excellent results. For three years now, my performance has beaten the S&P 500. But analyzing every stock took too much time: sites with incomplete data, calculation methods and criteria never aligned with mine. And spotting the best stocks was just as time-consuming, even with my own well-defined checklist. So I put my software development background to work to build this software, base my investment strategy on its results, and share it with people who share the same passion as me. It judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).