Goldman Sachs raises MakeMyTrip stock price target to $84 on growth outlook

Goldman Sachs raised MakeMyTrip’s price target to $84 from $80 while keeping a Buy rating, citing expected FY2027 revenue growth of 19% and first-quarter revenue acceleration to 16% year over year. The firm sees improving domestic air travel, strong hotel demand, and sustained bus segment strength, though U.S. dollar revenue growth may slow to 6% from 8% due to rupee depreciation. The setup is constructive overall, but recent Q4 results were mixed, with EPS of $0.32 beating estimates by 14.3% while revenue missed by 11.0%.

Analysis

MMYT looks less like a simple earnings recovery and more like a multiple repair story if management can keep proving that India travel demand is structurally underpenetrated online. The key second-order effect is that the market is still pricing the name as if FY26's disruptions are the new normal, while the operating mix is shifting toward higher-margin hotel and bus take rates that can offset some FX headwind on reported dollars. If the next 1-2 quarters confirm domestic air normalization, the stock can rerate faster than the growth rate itself because sentiment is starting from a depressed base.

The larger risk is that the upside case is too dependent on macro normalization rather than company-specific execution. Rupee depreciation can mask underlying booking momentum in reported revenue, so investors may get a sequence of beats in local currency but misses in USD optics, which is exactly the kind of setup that keeps valuation compressed. In addition, any renewed geopolitical or aviation disruption would hit OTA demand almost immediately, but the equity market tends to punish these names for months, not days, once disruption risk re-enters the narrative.

Consensus appears to be underweight the asymmetry between modest topline acceleration and the potential for margin/sticky cash flow expansion if online penetration continues to compound. A high P/E is not the right frame if revenue growth can reaccelerate into the high-teens while mix improves, because the market is buying duration rather than current earnings. The overhang is whether Goldman’s and ICICI’s optimism becomes crowded before the second-half growth inflection arrives, which would limit near-term upside even if fundamentals keep improving.

Key Decisions for Investors

• Add MMYT on 3-6% pullbacks over the next 2-4 weeks; target a 15-20% rerating over 6 months if FY27 growth stays near high-teens, with downside capped by strong gross margins and platform share gains.
• For event risk, buy MMYT call spreads into the next earnings cycle (e.g., 3-4 month tenor) rather than stock outright; the convexity is better if revenue reacceleration shows up before reported USD growth fully normalizes.
• Pair MMYT long against a short in a weaker India travel/OTA proxy or a high-duration consumer internet name with less earnings support; the thesis is relative multiple expansion for the business with the cleanest demand and mix story.
• If the rupee weakens further, use it as a tactical opportunity to add rather than chase the rally: FX should pressure reported numbers before it changes underlying booking trends, creating a mismatch the market often overreacts to.