MakeMyTrip to Acquire Happay: How Should You Play the Stock?

Core Viewpoint - MakeMyTrip Limited (MMYT) has significantly outperformed the broader market and its competitors, driven by strong gross bookings and strategic acquisitions, particularly in the corporate travel sector [1][2][4]. Group 1: Stock Performance - MMYT shares have increased by 113.5% year to date (YTD), outperforming the Zacks Computer and Technology sector's return of 26.4% [1]. - Competitors such as GoDaddy (GDDY) and QuinStreet (QNST) saw YTD increases of 74.3% and 60.4%, respectively, while Asure Software (ASUR) experienced a decline of 9.5% [1]. Group 2: Strategic Acquisitions - The acquisition of the Happay Expense Management platform from CRED is expected to enhance MMYT's corporate travel offerings by integrating advanced expense management capabilities [2][3]. - This acquisition will strengthen MMYT's MyBiz and Quest2Travel platforms, improving policy compliance, cost efficiency, and fraud control [4]. Group 3: Partnerships and Innovations - MMYT has completed over 60 integrations with leading travel and expense management solution partners, enhancing its product capabilities [5]. - The company launched a co-branded credit card with ICICI Bank, offering unlimited rewards and various cash-back percentages on travel-related expenses [7][8]. - Partnerships with LEGOLAND Malaysia Resorts and the Singapore Tourism Board aim to promote travel packages and boost inbound travel from India [9][10]. Group 4: AI and Technology Integration - MMYT is leveraging Generative AI in its growth strategy, notably through the chatbot Myra, which enhances the hotel and homestay booking process [11]. - AI initiatives on the redBus app have improved customer satisfaction and reduced the need for customer service agents by nearly 45% [12]. Group 5: Financial Outlook - The Zacks Consensus Estimate for Q3 fiscal 2025 revenues is $256.7 million, reflecting a year-over-year increase of 19.8% [13]. - Earnings per share are estimated at 44 cents, indicating a year-over-year rise of 25.7% [13]. - MMYT has consistently beaten earnings estimates in the past four quarters, with an average surprise of 41.7% [13].