Why MakeMyTrip (MMYT) Stock Is Higher Today

NEW YORK (TheStreet) -- Shares of MakeMyTrip Ltd.  (MMYT), a top India online travel agency, are up 11.82% to $29.90 after announcing that it's partnering with online reputation management company TrustYou.

TrustYou will verify reviews for users of MakeMyTrip's site in an effort to raise the customer-experience and increase travel bookings.

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TheStreet Ratings team rates MAKEMYTRIP LTD. as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate MAKEMYTRIP LTD (MMYT) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Net operating cash flow has decreased to $5.37 million or 48.81% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, MAKEMYTRIP LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • MAKEMYTRIP LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, MAKEMYTRIP LTD continued to lose money by earning -$0.55 versus -$0.73 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 86.7% when compared to the same quarter one year prior, rising from -$20.41 million to -$2.71 million.
  • This stock has increased by 96.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in MMYT do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • You can view the full analysis from the report here: MMYT Ratings Report
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