Professional Documents
Culture Documents
INITIATION OF COVERAGE
3-5 Yr. EPS Gr. Rate 150% We are initiating coverage on MakeMyTrip (MMYT), India's largest online travel
52-Wk Range $41.47-$14.00 agency (OTA), with a Perform rating. We are bullish on the growth prospects of
Shares Outstanding 34.1M India's largest OTA (48% share of 2009 gross bookings) on both revenues and
margins. We forecast 52% top line growth in FY11/FY12 and expect margins to
Float 5.8M
expand 40bps from FY10 to FY12. Growth levers such as LCC growth, rise in
Market Capitalization $1,162.9M credit/debit card penetration levels and increasing internet penetration are positive
Avg. Daily Trading Volume NA for the name, in our view. However, we believe at current levels the shares appear
Dividend/Div Yield NA/NM fully valued. Since its IPO, MMYT has catapulted nearly 150% from its offer price of
Fiscal Year Ends Mar $14, and we believe the upside from current levels is limited.
Book Value ($1.42) KEY POINTS
2011E ROE NA
■ Market Leader in a Nascent OTA Space : MMYT is the market leader in the
LT Debt $0.1M
Indian OTA space, with 48% share of 2009 gross bookings. The Indian travel
Preferred NA market is expected to grow at a 15% CAGR to $54B in 2012 with online travel
Common Equity ($25M) increasing at a 27% CAGR to $8.7B in 2012 per WTTC.
Convertible Available No
■ Several Growth Levers : We identify several growth levers ahead for the
EPS Diluted Q1 Q2 Q3 Q4 Year Mult. business as MMYT grows its presence in the nascent OTA market in India: 1)
2010A 0.02 0.00 0.02 0.00 0.05 NM rise in number of LCCs; 2) rise in discretionary spending; 3) rapid rise in internet
adoption; and 4) margin expansion from a favorable mix shift to higher margin
2011E 0.05A 0.01 0.04 0.07 0.18 NM
hotels.
2012E -- -- -- -- 0.46 74.1x
■ Investments Risks: 1) supplier relationships risk; 2) highly competitive market;
3) longer-term Air Commission pressures; 4) driving the hotel business growth
online could be challenging; 5) internet penetration may not rise at rates
expected; and 6) credit card penetration growth may slow.
■ Relative Valuation: At its current price, MMYT trades at a rich P/E multiple of
85x our CY11 $0.40 EPS estimate vs. peer average of 33x with an CY11 PEG
of 1.5x compared to its closest peer CTRP's PEG of 1.2x and peer group
median of 1.3x.
■ We are establishing a FY11 net revenue estimate of $61.6M and non-GAAP
EPS of $0.18 on transaction volume of 2.5M and gross bookings of $724.5M.
For FY12, we estimate net revenue/non-GAAP EPS of $93.8M/$0.46 on
transaction volume of 3.3M and gross bookings of $1B.
Oppenheimer & Co Inc. 300 Madison Avenue 4th Floor New York, NY 10017 Tel: 800-221-5588 Fax: 212-667-8229
MakeMyTrip Limited
Contents
INDIA’S ONLINE TRAVEL LEADER WITH SEVERAL GROWTH LEVERS AHEAD ... 3
RISE IN NUMBER OF LOW COST CARRIERS ................................................. 3
RISE IN DISCRETIONARY INCOME TO FUEL TRAVEL GROWTH ....................... 3
RAPID RISE IN INTERNET ADOPTION ........................................................... 4
MARGIN EXPANSION FROM A FAVORABLE MIX SHIFT................................... 4
KEY RISKS FOR MMYT ............................................................................. 4
INDIAN ECONOMY ____________________________________________ 7
INDIA’S RISING MIDDLE-CLASS .................................................................. 8
W ALLET-SHARE SHIFT FROM BASIC NECESSITIES TO DISCRETIONARY ITEMS9
TRAVEL DISTRIBUTION CHANNELS IN INDIA ............................................... 13
GDS IN THE TRAVEL ECOSYSTEM ............................................................ 14
AIRLINES (77% OF NET REVENUE) .......................................................... 16
HOTELS & PACKAGES (20% OF NET REVENUE)........................................ 18
OTHER (3% OF NET REVENUE)................................................................ 19
TRAVEL STORES ..................................................................................... 20
TRAVEL AGENTS’ NETWORK .................................................................... 20
MOBILE .................................................................................................. 21
GROWTH IN LCCS .................................................................................. 21
GROWTH IN INTERNET PENETRATION ....................................................... 22
RISE IN CREDIT CARD PENETRATION LEVELS ........................................... 23
INDIA BASED AIRLINES SHARE GROWING AS A % OF INTERNATIONAL TRAFFIC MIX
.............................................................................................................. 24
HOTEL BOOKINGS GROWTH .................................................................... 25
BRAND RECOGNITION LEADS TO MARKET SHARE GAINS ........................... 26
COMPETITION ______________________________________________ 27
FINANCIAL AND OUTLOOK _____________________________________ 30
FY09 REVIEW......................................................................................... 30
RECENT RESULTS/NEWS......................................................................... 31
FY10 RESULTS....................................................................................... 31
FY11 OUTLOOK ...................................................................................... 31
FY12 OUTLOOK ...................................................................................... 32
FX IMPACT ............................................................................................. 34
AREAS OF CONSIDERATION ____________________________________ 35
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MakeMyTrip Limited
Executive Summary
We are initiating coverage on MakeMyTrip Limited, India’s largest Online Travel Agency,
with a Perform rating. We are confident regarding the growth prospects and potential of
India’s largest OTA (48% share of gross bookings in 2009) in terms of both revenues and
margins. We forecast top line growth of 52% in FY11 and FY12 and expect blended gross
margins to expand 40bps from FY10 to FY12, which translates in to non-GAAP EPS
growing from $0.05 in FY10 to $0.46 in FY12. Growth levers such as LCC (low cost
carrier) growth, especially at the domestic level, significant rise in credit/debit card
penetration levels, and increasing internet penetration from the abysmally low current
levels are positive for the name, in our view.
MMYT currently trades at a multiple of 85x our CY11E EPS of $0.40 vs. peer average of
33x and a PEG of 1.5x estimated revenue growth of 56% in CY11 vs. its closest peer
CTRP at 1.2x and a peer median PEG multiple of 1.3x. Our DCF analysis yields a share
price of $35 rendering the shares fairly valued at current levels. We arrive at our DCF
using an 11% WACC and a terminal value of $2.8B in FY20. Since its IPO (August 12,
2010), MMYT has catapulted ~150% from its offer price of $14, and we believe the upside
from current levels is limited. In addition, we believe volatility due to a small float size
remains a near-term risk.
In the next 12 months a majority of the LCCs will be eligible to add overseas routes. We
expect to see increased offerings from LCCs, especially in terms of near-shore
destinations in South East Asia (Hong Kong, Singapore, Malaysia, and Thailand) and
Dubai in the Middle East, driving prices down even further to these destinations and thus
rendering these overseas destinations more attractive to Indian vacationers.
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MakeMyTrip Limited
mix, is expected to rise from a 17% share in 2005 to 20% in 2025—significant when
viewed in the context of wallet size potentially tripling from 2005-2025. The key takeaway
here is that discretionary spending is expected to rise to 70% of the total share-of-wallet
by 2025 vs. 52% in 2005.
We believe, however, that internet penetration levels will continue to rise both in the near
and longer term with increased competition and the resultant pricing pressures in the
internet service provider market. Recent broadband spectrum auction by the Indian
government has produced a multitude of players who are looking to offer broadband
internet services and we should see a spate of broadband service offerings in the near
term. We believe true penetration levels to be higher than 7% given that a majority of
potential Travel consumers have broadband access at the workplace.
Competition Risk: The travel industry in India is intensely competitive. MMYT may not
have the financial resources to maintain its competitiveness in the marketplace against
competitors with deeper pockets both from the OTA and Supplier Direct side. Additionally,
MMYT competes with all traditional travel companies who may also have online initiatives
given all travel agents are targeting the same customer.
Air Commission Pressures: Air suppliers (including Amadeus, the company’s GDS
provider) may reduce or eliminate commissions in the future, which could adversely affect
the profitability of the business.
Significant Shareholder Risk: We believe SAIF (South Asian Investment Fund) owning
over 43% of shares outstanding constitutes a risk.
Driving the Hotel Business Growth Online Could Be Challenging: MMYT’s expansion
and growth in the hotel business brings a great risk and a great reward. The market
opportunity is significant, the margins are wider, but the sector is still immature and highly
fragmented.
Internet Penetration Risk: India lags several Asia Pacific markets and is well behind the
developed markets in terms of internet and broadband penetration, with ~7% penetration
levels (or 81 million internet users) currently. Internet penetration may not grow as
expected given various challenges in the marketplace.
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MakeMyTrip Limited
Credit Card Penetration Risk: According to Euromonitor and the Reserve Bank of India,
the number of credit cards in India was over 25.5 million in 2009, , while the number of
debit cards in India was over 130 million. Euromonitor expects the number of credit cards
in India to reach 73.7 million by 2014 (i.e., an annual growth rate of over 25%) and the
number of debit cards in India to reach 350 million by 2014 (i.e., an annual growth rate of
over 22%). Credit card growth may not pan out as estimated due to the highly risk averse
nature of the Indian consumer.
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MakeMyTrip Limited
Company Profile
Originally incorporated in April 2000 as International Web Travel Private Limited in
Mauritius, the company subsequently changed its name to MakeMyTrip Limited and
converted to a public company. Its registered office is located at the offices of Multiconsult
Limited at Rogers House, 5 President John Kennedy Street, Port Louis, Mauritius with
principal executive offices located at 103 Udyog Vihar, Phase 1, Gurgaon, Haryana
122016, India. Its principal website address is www.makemytrip.com.
Based on gross bookings in 2009, MMYT is the largest online travel company in India,
according to PhoCusWright. MMYT’s services and products include air tickets, hotels,
packages, rail tickets, bus tickets, car hire and ancillary travel requirements such as
facilitating access to travel insurance. MMYT commenced operations in 2000, and in the
first five years following inception, it focused on the NRI (non-resident Indian) market in
the US, servicing mainly the need for the United States-India inbound air tickets. The
Indian business was launched in September 2005. In FY10, MMYT processed 1.6 million
transactions for domestic air tickets in India, which helped generate $31.1 million in net
revenue from the air ticketing business. Net revenue from hotels and packages business
totaled $8.0 million in FY10. According to comScore, www.makemytrip.com was the
second most visited travel website in India (after the Indian Railways’ website) in each of
the years from 2007-2009 and had an average of over 1.7 million unique visitors per
month in 2009. MMYT targets the end market through its various distribution channels
such as websites, call centers, travel stores and its strong 4,000–travel-agent network. It
provides end customers with access to all major domestic full-service and low-cost airlines
operating in India and all major airlines operating to and from India, over 4,000 hotels in
India and a wide selection of hotels outside India, Indian Railways and several major
Indian bus operators.
Employees
As of Mar-2010, MMYT had 757 employees on its payroll. Almost all employees are
located in India with just three based in the US.
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MakeMyTrip Limited
Management 7
Product Development 20
Sales & Marketing 442
Technology 111
Others 177
Total 757
Indian Economy
MMYT’s target market is India, the seventh-largest country in the world. It covers an area
spanning approximately 1.3 million square miles in Southeast Asia. The country shares its
borders with the People's Republic of China, Nepal and Bhutan in the north, Pakistan in
the west, and Myanmar and Bangladesh in the east.
1400
1200 1330
1148
1000
975
800
804
600
400
338
200
0
China India Africa Europe North America
According to the CIA factbook, India is one of the world’s most populous countries with an
estimated population of over 1.15 billion as of July 2009. India’s gross domestic product,
or GDP, on a purchasing power parity basis was approximately $3,561 billion in 2009,
making it the world’s fifth largest economy after the European Union, the United States,
China and Japan. Economic liberalization, including reduced controls on foreign trade and
investment, which began in India in the early 1990s, has served to accelerate the
country’s GDP growth, which has averaged more than 7% annually since 1997. The
Indian economy registered a GDP growth of 7.4% in FY10 (March fiscal year) despite the
weak global macro environment, making it the second fastest growing economy globally
as of March 2010 for countries with GDP over $150 billion. The Indian government
expects FY11 GDP growth between 8.5-8.75%.
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MakeMyTrip Limited
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
1 2 3 4 5 6 7 8 9 E E
0 0 0 0 0 0 0 0 0 0 1
0 0 0 0 0 0 0 0 0 1 1
2 2 2 2 2 2 2 2 2 0 0
2 2
8
MakeMyTrip Limited
120 1600
1400
100
1200
80
1000
Upper Class
60 800 Middle Class
600 Underpriviliged
40
Total Population
400
20
200
0 0
1985 1995 2005 2015E 2025E
9
MakeMyTrip Limited
100%
90%
80% 39%
52%
70% 61%
70%
60%
50%
40%
30% 61%
48%
20% 39%
30%
10%
0%
1995 2005 2015E 2025E
10
MakeMyTrip Limited
The entire travel ecosystem in India, including air, hotel, OTA’s bus and rail is seeing
innovation. Surprisingly the first real online catalyst came from the government-owned
Indian railways which started offering online bookings back in 2005. The growth of LCCs,
which have now grown from just a single one back in 2004 to seven in 2010, has also
provided a major boost to the online travel market.
Source: TRAI
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MakeMyTrip Limited
Paramount, 0.3
0% Spicejet, 13.20
%
Go
Air, 5.60% Jet
Airways, 26.60%
IndiGo, 16.90%
Kingfisher, 20%
NACIL, 17.30%
Source: TRAI
The Indian travel and tourism industry is large and growing rapidly. According to the
WTTC (World Travel and Tourism Council), the contribution of travel & tourism to GDP is
expected to rise from 8.6% (Rs.5532 billion or US$118 billion) in 2010 to 9.0% (Rs.18544
billion or US$330 billion) by 2020. India is one of the fastest growing countries in the world
in terms of its travel and tourism industry. Real GDP growth for the travel & tourism
economy is expected to be 6.7% in 2010 and to average 8.5% per annum over the coming
ten years. Further, the WTTC expects that, as a result of the strong growth rate in the
Indian travel and tourism industry, over the next ten years India will become one of the
world’s top ten travel and tourism markets in terms of the absolute size of its market.
1000
900
800
700
600
500
917
400
300
501
200
100 216
148 143 124 122 111 104 80
0
Source: WTTC
According to PhoCusWright, the Indian online travel market grew 11% to reach $3.4 billion
in 2009. Netscribes has cited sources stating that, in 2009, approximately 34% of air
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MakeMyTrip Limited
tickets and 14% of train tickets booked in India were sold online. Many travelers also
utilize online travel agency websites for travel-related research and information. Per
PhoCusWright, air ticket bookings contributed to approximately 70% of the online travel
market in India in 2009. However, the non-air ticket segments are also growing in the
Indian online travel market. Online rail revenues grew in excess of 25% in 2008-2009.
Indian government has also recognized the importance of the travel and tourism industry,
and over the past several years, has enacted or announced several initiatives to give
further impetus to the industry:
• The provision of one-month tourist visas on arrival for citizens of five countries
(Japan, Finland, New Zealand, Singapore and Luxembourg);
• Support of an “open-skies” policy in India which has led to the rise in LCCs;
We believe the Indian travel market is poised for growth given a strong domestic
economy, growth in the LCC market and a highly fragmented lodging industry.
Government spending is evident in airports and roads, and we believe OTAs can
capitalize on the opportunities presented by this Asian behemoth.
Travel Suppliers: Generally, at the top of the travel distribution value chain are suppliers
that seek cost-effective ways to reach end-user travelers. Historically, these suppliers
relied largely on traditional GDS (global distribution system) to connect their inventory of
products and services with travel agencies, which in turn distribute the products and
services to travelers.
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MakeMyTrip Limited
Meta Travel Search Engines: These are online travel search sites such as Ixigo,
Ezeego1, Zoomtra and Kayak.com, and travel research sites that have search
functionality, such as TripAdvisor (Expedia-owned).
Supplier Websites: Recently, travel suppliers have begun to utilize other forms of
distribution, including direct distribution via their own websites. Many travel suppliers such
as airlines and hotel companies have their own branded websites to drive business.
Amadeus, headquartered in Madrid, Spain, is the sole GDS provider for MakeMyTrip, and
offers over 700 airlines and 80,185 hotel properties on its network. All in all, GDSs
encompass a large network of airline and hotel partners and are an important part of the
travel ecosystem.
Airline Industry
LCC and network carriers have an equal share of India’s airline market in terms of
passenger volumes. Due to airline deregulation policies adopted by the government, the
Indian air market is characterized by fierce competition that keeps fares in check.
Due to aggressive direct distribution and the OTA impact on LCCs approximately 54% of
LCC airlines tickets were transacted online in 2008. One-third of the domestic air market
($1.54B) was booked online in 2008.
Hotel Industry
The lodging market in India is heavily fragmented and largely untapped. Information on
Indian hotels is not well aggregated and available only on a piecemeal basis from a
myriad of sources. A lot of the hotel inventory is not yet online.
Indian Railways
The Indian government-owned Indian Railways has emerged as the largest online travel
website not just in India but also in the entire Asia-Pacific region when measured by
transaction volume—and this is despite internet penetration levels of just 7% in India. Rail
is the main mode of transportation for a majority of the Indian populace thus representing
a significant opportunity.
Religious Tourism
Religious tourism is popular in India, where visitors can take tours and make pilgrimages
to many sites easily accessible by air or railway. According to PhoCusWright, ~20% of
trips in India are religious trips made with family. Pilgrimage destinations (please see
Exhibit 10 below) are some of the most popular destinations in India. However, lack of
online inventory for these destinations deters online booking for hotels and packages for
this segment. We are starting to see large/reputed hotel chains focus on bringing rooms in
the religious zones online and we expect to see availability improve in the religious zones
in the next one-two years.
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MakeMyTrip Limited
GDS
Amadeus
Suppliers
Make My Trip Travel Network
Network Airlines
MakeMyTrip.Com
Low Cost Carriers India Domestic and US Inbound Travel Customers
Domestic Travelers
Hotels MakeMyTrip Travel Agent Network
4000 Travel Agents International Travelers
Rail
MakeMyTrip Travel Stores
Bus 19 Travel Stores
MakeMyTrip.ae
Middle East Inbound Travel
Catering to NRIs in the Middle East
OkTataByeBye.Com
Review Site similar to Tripadvisor.com
MMYT generates majority of its revenue through its Airlines and Hotel lines of business.
Product Mix in FY10 was predominantly Airline travel with Air accounting for 77% of total
net revenue and Hotel and Packages for 20%. Airline sales are largely online with 94% of
airline transactions online in FY10.
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MakeMyTrip Limited
Revenue from air tickets sold as part of packages is eliminated from air ticketing revenues
and added to the hotels and packages revenue.
Despite downward commission pressures from airlines and lack of GDS fees from
emerging LCCs, air net revenue margins have increased 50bps from FY08 to FY10
largely due to incentive fees paid by Indian airline suppliers to travel agents such as
MMYT. We expect these incentive fees to largely subside, which could put pressure on
airline margins going forward. We estimate airline margins to decline to 7.3% in FY11 and
7% in FY12.
Commission income from Airline carriers accounted for 54% of MMYT’s airline revenue
mix in FY10. MMYT currently charges Rs. 50-100 per transaction as a service fee to end-
users. This accounted for ~27% of net revenues in FY10. The remaining 19% came from
GDS or Segment fees.
Segment
Fees, 19%
Service
Fees, 27%
Commission
Income, 54%
In FY10 Airlines constituted 77% of total revenue mix ($31 million), with Domestic Air
accounting for 48%, or $19.3 million of total net revenue. Ticket sales to NRI Indians
coming from the US to India, which are largely driven by Call Centers (85%), accounted
for 15% of total revenue, or $6 million. Inbound Air tends to be higher margin in nature at
about 10% gross margins. By our estimates, 72% of net revenues or $22.4 million from
the Airline Segment was generated from the online channel.
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MakeMyTrip Limited
90%
80%
Inbound Air
Domestic 96% 4%
0%
70% (US to
India), 15%
60%
Outbound,
50%
14% Outbound 52% 9% 39%
40%
30%
Domestic Inbound 15% 0 85%
20% Air, 48%
10%
0% 20% 40% 60% 80% 100%
0%
FY10 Online Retail Call Centre
In the Hotels & Packages business, revenue (including revenue on air tickets sold as part
of packages) is generally accounted for on a “gross” basis, representing the total amount
paid by customers for these travel services and products. The cost of procuring the
relevant services and products for sale to customers in this business is classified as
service cost. Hotels & Packages revenue also includes commissions earned for the sale
of hotel rooms (without packages), and commissions as an agent from other online travel
agents and aggregators from whom the company procures hotel rooms for customers for
hotels outside India, which are accounted for on a “net” basis. The revenue from the sale
of hotels and packages and hotel reservations is recognized on the customer’s departure
and check-in dates, respectively.
In FY10, Hotels & Packages contributed 20% of total net revenue ($8 million), with
Domestic Hotels & Packages accounting for 11% or $4.4 million of total net revenue.
Outbound Hotels & Packages accounted for 9% of total net revenue ($3.6 million). FY10
was negatively impacted by macro and we believe affected the higher priced outbound
travel segment as customers opted for lower priced domestic holidays. We believe
Outbound Hotels & Packages could constitute a higher part of the mix going forward given
a robust and growing Indian economy, easy accessibility to South East Asian Countries
and the Middle-East all within a five-hour flight time from India and a growing number of
cheaper airline options as LCCs launch their near-shore international operations. By our
estimates 41% of net revenues, or $3.2 million, from the Hotel and Packages segment
were generated from the online channel in FY10.
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MakeMyTrip Limited
25%
10%
Domestic 36% 31% 24%
Domestic
5% Holidays &
Hotels, 11%
0% 20% 40% 60% 80% 100%
0%
FY10 Online Retail/B2B Call Centre
Rail net revenue contribution was ~$140K in FY11, translating to average revenue per
transaction of $0.75. Similarly the bus segment contributed ~$60K in net revenue in FY10
translating to $1.05 average value per transaction.
Ad revenues and travel insurance contributed a majority of the revenues in this category,
accounting for 2.5% or $1 million of total net revenue.
We estimate the “other” category to more than double in FY11 and a net revenue
contribution of 3.1 million transactions with car rentals added to the mix as well. We also
believe that travel insurance could start to see higher attach rates given a ticket size of
just $2-3 per air ticket.
Exhibit 15: Other - Revenue Trends ($ million) and Revenue Breakdown for FY10
7.0
Bus, 0.15%
6.0
Rail, 0.35%
5.0
4.0
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MakeMyTrip Limited
Travel Stores
MMYT operates 19 travel stores in major cities across India, which primarily sell travel
packages. At these travel stores, customers can consult with sales representatives,
receive comprehensive, real time flight, hotel and package information as well as
information for other services and products, and make travel bookings, without prior
appointment. The travel stores are also equipped with MMYT’s ERP application and linked
to their CRM system.
Call Centers
MMYT has outsourced call center operations to third-party vendors such as IBM Daksh,
and currently the company outsources a portion of its customer service to IBM Daksh and
Intelenet Global Services in India. There are 459 employees who work on behalf of MMYT
at the outsourced vendors. Customers are provided with real time assistance through
these call centers, which are available 24/7.
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MakeMyTrip Limited
Mobile
In 2008, MMYT also launched “makemytrip.mobile,” a mobile service platform. The mobile
channel allows customers to search, book and pay for Indian domestic air tickets on their
mobile phones at no additional cost. Tickets can also be delivered to customers by SMS.
Currently, the mobile service is available only for Indian domestic air tickets. With a mobile
footprint far larger than current internet penetration we view this as a viable distribution
channel as comfort levels.
Supplier Relationships
MMYT has a team of 25 employees dedicated to maintaining and enhancing their existing
relationships, and developing new relationships with travel suppliers. The team negotiates
agreements or arrangements with suppliers for access to travel inventory. MMYT works
with all domestic airlines in India to provide content depth to the consumer. MMYT has
access to real-time inventory for all airlines operating from within India either through the
Amadeus GDS or through direct connects to the airline supplier’s booking system.
Following is a list of top five suppliers to MMYT based on net revenue contribution in
FY10:
Growth Opportunities/Drivers
We believe that the online travel industry in India is under-penetrated and will continue to
grow faster than the overall Indian travel industry, primarily because of the following
drivers of growth.
Growth in LCCs
The advent of LCCs and increasing competition in the Indian airline industry has lent
affordability to air travel in India and made it a viable alternative for a larger number of
travelers to choose air travel over the traditional rail travel. With the increase in low-cost
airlines, online air travel bookings have also increased since low-cost airlines typically
prefer to use cost-effective distribution channels such as the internet, using it as their
primary distribution channel, either directly or through online travel agents. In FY10 ~30%
of LCC inventory was sold through OTAs. LCCs don’t use GDS for selling their air tickets.
OTAs also enjoy certain exclusive deals and preferred inventory with certain LCCs.
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MakeMyTrip Limited
and Dubai in the Middle-East driving prices down even further to these destinations while
rendering these overseas destinations more attractive to Indian vacationers.
4
7
3 6 6
5
2 4
1
1
0
2004 2005 2006 2007 2008 2009
Source: TRAI
However, we believe that internet penetration levels will continue to rise both in the near
and longer term with increased competition and the resultant pricing pressures in the
internet service provider market. Recent broadband spectrum auction by the Indian
government has produced a multitude of players who are looking to offer broadband
internet services and we should see a spate of broadband service offerings in the near
term. We believe true penetration levels to be higher than 7% given that a majority of
potential travel consumers have broadband access at the workplace.
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80.0%
70.0% 74.5%
60.0%
50.0%
49.0%
40.0%
30.0%
20.0% 24.0%
10.0%
7.0% 5.6%
0.0%
North America Europe China India Africa
Source: Euromonitor
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MakeMyTrip Limited
There are many banks among the Top Business/Finance sites in India, including both
local and international banks (46.5% reach per comScore). Online banking has gained
significant traction over the past few years, having successfully vaulted over the trust
hurdle. We believe it is only a matter of time before credit cards achieve higher
penetration levels in India.
We believe that with increasing sophistication of the banking infrastructure in India and the
provision of more secure online payment interfaces, internet users in India are overcoming
their apprehensions about security in online transactions and thereby adding to the online
consumer base.
Recently the Reserve Bank of India has asked banks to consider introduction of a general-
purpose credit card (GCC) facility up to Rs.25000 at their rural and semi-urban branches.
The credit facility will be structured as a revolving credit, entitling the holder to withdraw up
to the limit sanctioned. If introduced, we believe this could provide further impetus to credit
card growth in India.
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MakeMyTrip Limited
100%
90%
80%
70%
71% 70% 69% 68% 67%
60%
50%
40%
30%
20%
29% 30% 31% 32% 33%
10%
0%
2005 2006 2007 2008 2009
Source: TRAI
35 0 20 0
18 0
30 0 Transac tions
16 0
25 0 Boo kin gs
14 0
20 0 12 0
10 0
15 0 3 02.3 80
10 0 60
1 82.1
40
50 109 .7
81.4 20
0 25.9 0
20 08 20 09 2 010 2011 201 2
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MakeMyTrip Limited
Hotel & Packages transactions totaled 109.7 million in FY10 and we are estimating
transaction volume to grow to 182.1 million in FY11 and 302.3 million in FY12 for a FY08-
FY12 CAGR of 192%. We estimate gross bookings to grow at a CAGR of 81% from FY08-
FY12 to reach $188.5 million in FY12.
Hotel net revenue contribution increased from 14% in FY08 to 20% in FY10. We estimate
hotel revenue mix to rise to 29% in FY12 as it increases its supplier relationships in the
hotel segment and increased penetration levels of direct connects.
100%
90% 14%
22% 20%
80% 24%
29%
70%
60%
50%
40% 85%
75% 77% 71%
30% 64%
20%
10%
0%
2008A 2009A 2010A 2011E 2012E
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MakeMyTrip Limited
Competition
MMYT faces competition from OTAs, suppliers, met search engines and traditional travel
agencies. PhoCusWright estimates that the total “business-to-customer” online travel
agency market (i.e., businesses serving end consumers with travel products and/or
services through an online channel) in India is valued at $1 billion and is dominated by
four players—MakeMyTrip, Yatra, Cleartrip and Travelguru (which was acquired by
Travelocity in August 2009). Of these, MakeMyTrip commands a market share of 48%,
followed by Yatra at 24% and Cleartrip at 18%, based on gross bookings for 2009. These
online travel agencies face competition from traditional travel agents as well as meta
search engines, such as Ixigo, Ezeego1 and Zoomtra.
Others, 10%
Yatra, 18%
MakeMyTrip, 48%
Cleartrip, 24%
In addition to its rival Indian OTAs, MMYT also faces competition from supplier direct
websites as suppliers have been steadily focusing on increasing online demand on their
own websites and decreasing or eliminating their dependence on third-party distributors.
For instance, many low-cost airlines may, subject to applicable regulations, reduce
commissions to agents including OTAs or restrict the amount of service fees that OTAs
are able to charge customers. Suppliers who sell on their own websites typically do not
charge a processing fee, and, in some instances, offer advantages such as their own
bonus miles or loyalty points, which could make their offerings more attractive to
customers rather than OTAs.
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MakeMyTrip Limited
Cleartrip.com recently launched website operations in the United Arab Emirates. Large,
established internet search engines have also recently launched applications offering
travel itineraries in destinations around the world, and meta-search companies who can
aggregate travel search results also compete against MMYT for customers.
Many airlines, hotels, car rental companies and tour operators have call centers and have
established their own travel distribution websites. From time to time, travel suppliers offer
advantages, such as bonus loyalty awards and lower transaction fees or discounted
prices, when their services and products are purchased from supplier-related channels.
On the hotel end of the business MMYT competes with large traditional travel agencies in
India such as Cox & Kings, Kuoni India and Thomas Cook, all of which are established
industry players in the Indian travel market.
Travel Suppliers: Generally, at the top of the travel distribution value chain are suppliers
that seek cost-effective ways to reach end-user travelers. Historically, these suppliers
relied largely on traditional GDS to connect their inventory of products and services with
travel agencies, which in turn distribute the products and services to travelers.
Meta Travel Search Engines: These are online travel search sites such as Ixigo,
Ezeego1, Zoomtra and Kayak.com, and travel research sites that have search
functionality, such as TripAdvisor (Expedia-owned).
Supplier Websites: Recently, travel suppliers have begun to utilize other forms of
distribution, including direct distribution via their own websites. Many travel suppliers such
as airlines and hotel companies have their own branded websites to drive business
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MakeMyTrip Limited
Management Team
Exhibit 26: Management Team
Name Role
29
MakeMyTrip Limited
100 9.5%
Net Revenues 9.0% Net Rev as % of Gross Bookings
80 8.5%
8.0%
60
7.5%
93.8 7.0%
40
61.6 6.5%
20 40.3 6.0%
16.4 25.0 5.5%
0 5.0%
A A A E E A A A E E
8 9 0 1 2 8 9 0 1 2
0 0 1 1 1 0 0 1 1 1
0 0 0 0 0 0 0 0 0 0
2 2 2 2 2 2 2 2 2 2
30 EBITDA
22.3
20
7.9
10
2.3
0
2008A 2009A 2010A 2011E 2012E
-10
-8.6
-20 -14.9
FY09 Review
FY09 revenue of $68.6 million was up 79% YoY. Airline segment was up 36% to $19.2
million with the Hotel and Packages segment more than doubling to $48.6 million. Airline
Gross Bookings increased 31% YoY benefiting from transaction growth of 21% and 8%
higher Average value per transaction. Net revenue margins remained flat YoY at 7.2%.
Loss reported for FY09 was $7.3 million a significant improvement over the $18.9 million
loss in 2008. Net revenues of $25 million constituted 75% Airlines, 22% Hotels &
Packages and 3% other. Blended gross margin of 8% was up 70bps YoY.
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MakeMyTrip Limited
Capital expenditures of $0.9 million and $1.1 million were made in FY09 and FY10. The
company expects to make ~$2.2 million in Capex in FY11.
Recent Results/News
IPO Details
MakeMyTrip went public on August 12, 2010 at $14/share and is listed on the Nasdaq
under the ticker MMYT. Total net proceeds to the company (net of underwriting discount
and expenses) were ~$54.44 million and are expected to be used for expanding
operations through acquisitions of ongoing operations. The percentage of shares under
lock-up for 180 days post listing is 85.4%.
Following the public issue of 5.75 million shares (including a greenshoe of 750K shares),
the total number of pro-forma outstanding shares is 34.4 million, and there are 36.6 million
fully diluted shares.
FY10 Results
FY10 revenue of $83.6 million was up 22% YoY largely on the 67% YoY growth in airline
revenue of $32.1 million. Airline gross bookings increased 57% YoY benefiting from
transaction growth of 41% and 11% higher average value per transaction. Net revenue
margins improved 40bps YoY to 7.6% largely due to incentives paid by some airlines,
better commissions from certain consolidators. Hotel & Packages growth slowed to 3.4%
large due to an unfavorable macro scenario both in India and overseas. While gross
bookings were up 9.4%, average value per transaction declined 19% in FY10 as
consumers chose to travel domestically (lower price point) in a weak macro. Transaction
growth in Hotel & Packages was healthy at 35%.
On a non-GAAP basis FY10 marked the first profitable year for MakeMYTrip posting a net
profit of $1.5 million, or $0.05 in EPS.
F2Q11 Outlook
For the Sep-quarter (F2Q), due to seasonality, we estimate transaction volume for Air-
ticketing to decline 8% QoQ, and gross bookings to decline 4% QoQ to $140.1 million
yielding net revenues of $10.1 million. We believe seasonality will have a greater impact
on the Hotel and Packages business and are estimating Hotel transaction volume to
decline 15% QoQ with gross bookings down 28% QoQ due to a 15% decline in ASPs as
well. We estimate Hotel and Packages net revenue of $2.8 million for total net revenue of
$13.6 million for the Sep-quarter. We estimate $0.01 in non-GAAP EPS for the Sep-
quarter.
FY11 Outlook
For FY11 we estimate net revenues of $61.6 million with Air representing 71% of the mix,
Hotels 24% and Other 5%. We estimate transaction volumes (Air and Hotel) to grow 36%
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MakeMyTrip Limited
YoY to yield bookings growth of 55% with blended average value per transaction up 11%.
We estimate $0.18 in non-GAAP EPS for FY11.
FY12 Outlook
For FY12, we estimate net revenues of $93.8 million (up 52% YoY) with Air representing
64% of mix, Hotels 30% and Other 6%. We estimate transaction volumes (Air and Hotel)
to grow 31% YoY to yield bookings growth of 45% with blended average value per
transaction up 14%. We estimate $0.46 in Non-GAAP EPS for FY12.
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MakeMyTrip Limited
100% 10.0%
90% 14% 9.0%
22% 20%
80% 24% 8.0%
29%
70% 7.0%
60% 6.0%
50% 5.0%
40% 85% 4.0%
75% 77% 71%
30% 64% 3.0%
20% 2.0%
10% 1.0%
0% 0.0%
2008A 2009A 2010A 2011E 2012E
Valuation
Exhibit 29: MMYT Valuation (share price a/o 9/21/10)
CY10 PE 309.7x
CY11 PE 85.2x
Our rating on MMYT shares is Perform. MMYT currently trades at a multiple of 85x our
CY11E EPS of $0.40 vs. the peer average of 33x and a PEG of 1.5x CY11 estimated
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MakeMyTrip Limited
revenue growth of 56% vs. its closest peer CTRP at 1.2x and a peer median PEG multiple
of 1.3x. Our DCF analysis yields a share price of $35, rendering the shares fairly valued at
current levels. We arrive at our DCF using an 11% WACC and a terminal value of $2.8
billion in FY20. Since its IPO (August 12, 2010), MMYT has catapulted nearly 150% from
its offer price of $14, and we believe the upside from current levels is limited. In addition,
we believe volatility due to a small float size remains a near-term risk.
FX Impact
MMYT’s exposure to FX risk primarily arises with respect to its non-India rupee
denominated trade and other receivables and other payables. In FY10 a 10.0%
appreciation of the USD against the INR assuming all other variables remained constant,
would have decreased MMYT’s loss for the year by $0.2 million. Similarly, a 10.0%
depreciation of the USD against the INR in FY10, assuming all other variables remained
constant, would have increased MMYT’s loss for the year by $0.2 million. On the
operations side 9.1% of revenue was in USD reflecting inbound air-ticket revenue booked
through the offline channel. MMYT does not have any hedging agreements in place.
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MakeMyTrip Limited
Investment Risks
Areas of Consideration
Supplier Relationships: Inability to maintain existing and establish new relationships with
travel suppliers could adversely affect the business.
Competition Risk: The travel industry in India is intensely competitive. MMYT may not
have the financial resources to maintain its competitiveness in the marketplace against
deeper pocketed competitors.
Increasing Competition from Supplier Direct Channels: MMYT faces competition not
only from other OTAs but also from its own travel suppliers such as airline, hotels, rental
cars who may have their own websites.
Continued Competition from Traditional Travel Agencies: MMYT competes with all
traditional travel companies who may also have online initiatives given all travel agents
are targeting the same customer.
Air Commission Pressures: Air suppliers (including Amadeus its GDS provider) may
reduce or eliminate commissions in the future, which could adversely affect the profitability
of the business.
Significant Shareholder Risk: SAIF owning over 43% of shares outstanding constitutes
a risk.
Extraneous Event Risk: The travel industry in India is susceptible to extraneous events
such as terrorist attacks and other acts of violence, which may result in a reduction in
travel volumes.
Driving the Hotel Business Growth Online Could Be Challenging: MMYT sells hotels
and packages largely through its offline channel. Given a highly fragmented and immature
hotel industry in India, we believe driving the hotel business online could be challenging.
Internet Penetration Risk: India lags several Asia Pacific markets and is well behind the
developed markets in terms of internet and broadband penetration with ~7% penetration
levels (81 million internet users) currently. Internet penetration may not grow as expected
given various challenges in the marketplace.
Credit Card Penetration Risk: According to Euromonitor and the Reserve Bank of India,
the number of credit cards in India in 2009 was over 25.5 million, having risen at an
annualized growth rate of 19% since 2000, while the number of debit cards in India was
over 130 million, having expanded at an annualized growth rate of 84% since 2000.
Euromonitor expects the number of credit cards in India to reach 73.7 million by 2014 (i.e.,
an annual growth rate of over 25%) and the number of debit cards in India to reach 350
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MakeMyTrip Limited
million by 2014 (i.e., an annual growth rate of over 22%). Credit card growth may not pan
out as estimated due to the highly risk-averse nature of the Indian consumer.
Companies Mentioned in This Report Not Covered by Opco (prices are a/o 9/21/10)
Jet Airways (BOM: 532617, Rs. 792.30)
Advani Hotels & Resorts India Ltd. (BOM: 523269, Rs. 58.20)
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MakeMyTrip Limited
Asia Travel
Ctrip.com CTRP $43.99 $47.01 $26.52 147.9 6,504 0 $477 (477) $6,028
eLong Inc LONG $19.58 $19.87 $9.10 23.7 464 0 $140 (140) $323
MakeMyTrip MMYT $34.07 $41.47 $20.75 36.6 1,247 3 $79 (76) $1,171
MakeMyTrip Mar $1,171 $54.8 $85.7 21.37x 13.67x $0.11 $0.40 309.7x 85.2x 1.5 56.4%
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MakeMyTrip Limited
DCF Valuation
($ in Millions, except per share amounts)
Total Debt
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MakeMyTrip Limited
Revenue $40 $62 $94 $136 $190 $257 $339 $431 $517 $610 $702
% Growth 61.2% 52.8% 52.3% 45.0% 40.0% 35.0% 32.0% 27.0% 20.0% 18.0% 15.0%
EBITDA $2 $8 $22 $45 $63 $85 $112 $142 $171 $201 $232
Operating Income $1 $6 $20 $45 $63 $85 $112 $142 $171 $201 $232
Less: Income Taxes (0) (1) (4) (9) (13) (17) (22) (28) (34) (40) (46)
Unlevered Cash Net Income $1 $5 $16 $36 $50 $68 $90 $114 $136 $161 $185
Nominal Period Cash Flow to the Unlevered Firm $4 $9 $21 $41 $56 $75 $97 $122 $145 $171 $196
Number of Periods to Discount Back Unlevered Free Cash Flow 0.00 0.75 1.75 2.75 3.75 4.75 5.75 6.75 7.75 8.75 9.75
Imputed Present Value of Period Cash Flow to the Unlevered Firm $4 $8 $17 $31 $38 $45 $53 $60 $65 $69 $71
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MakeMyTrip Limited
Others 0.1 0.7 0.3 0.2 0.4 0.3 1.2 0.5 0.7 0.9 1.0 3.1 6.0
Total revenues 38.3 68.6 22.6 17.0 22.8 21.1 83.6 26.2 25.9 28.9 30.0 110.9 146.7
Less: Service Cost 21.8 43.6 13.1 7.9 12.0 10.3 43.3 12.3 12.3 12.3 12.5 49.4 52.9
Net revenues 16.4 25.0 9.5 9.1 10.9 10.8 40.3 13.9 13.6 16.6 17.5 61.6 93.8
Total Gross Bookings 225.0 313.3 109.8 107.3 123.9 124.9 465.8 174.6 160.4 188.3 201.2 724.5 1,047.7
Total Transactions 919.5 1,332.1 453.1 440.3 492.3 490.9 1,876.6 633.0 576.7 643.3 696.7 2,549.8 3,328.2
Blended ASP (Air, H&P) 244.7 235.2 242.2 243.7 251.6 254.4 248.2 275.8 278.1 292.6 288.8 284.1 314.8
Operating expenses:
Payment Gateway 5.0 1.4 1.4 1.6 1.7 6.1 2.2 2.4 2.8 2.8 10.3 16.1
Personnel Expenses 8.1 9.3 2.2 2.4 2.4 2.8 9.8 3.3 3.8 4.3 4.2 15.6 18.7
SG&A 11.9 2.9 2.7 3.3 3.5 12.3 3.9 3.5 3.8 3.9 15.1 18.5
Marketing Expenses 23.2 7.5 2.3 2.2 2.6 2.6 9.7 2.6 3.1 3.5 3.5 12.7 18.2
Depreciation 1.1 1.6 0.4 0.4 0.4 0.4 1.6 0.4 0.4 0.4 0.4 1.8 2.4
Total operating expenses 32.5 35.2 9.1 9.1 10.3 11.0 39.5 12.4 13.4 14.9 14.8 55.5 73.8
Non-GAAP Operating Income (16.0) (10.2) 0.4 0.0 0.5 (0.2) 0.8 1.4 0.2 1.7 2.7 6.1 19.9
Miscellaneous 0.2 (0.7) 0.2 0.1 0.1 0.2 0.7 0.3 0.4 0.3 0.3 1.4 1.8
Pre-tax Income (15.8) (10.9) 0.7 0.1 0.6 0.0 1.5 1.7 0.6 2.0 3.0 7.4 21.7
Income tax benefit (expense) 0.0 0.0 - - - (0.0) (0.0) (0.0) (0.1) (0.4) (0.6) (1.1) (4.3)
Non-GAAP Net Income (15.8) (10.9) 0.7 0.1 0.6 0.0 1.5 1.7 0.5 1.6 2.4 6.3 17.4
GAAP Net Income (19.0) (7.3) (6.1) (0.1) 0.5 (0.4) (6.2) 1.3 0.1 1.2 2.1 4.7 15.8
Non GAAP EPS (diluted) $ (0.59) $ (0.37) $ 0.02 $ 0.00 $ 0.02 $ 0.00 $ 0.05 $ 0.05 $ 0.01 $ 0.04 $ 0.07 $ 0.18 $ 0.46
GAAP EPS $ (0.70) $ (0.25) $ (0.21) $ (0.00) $ 0.02 $ (0.01) $ (0.21) $ 0.04 $ 0.00 $ 0.03 $ 0.06 $ 0.13 $ 0.42
Basic 12.0 12.2 12.5 12.6 12.7 12.9 12.7 29.9 34.1 34.1 34.1 33.1 35.0
Shares outstanding (diluted) 27.0 29.8 29.8 29.8 29.8 29.8 29.8 32.5 36.6 36.6 36.6 35.6 37.5
EBIT (16.0) (10.2) 0.4 0.0 0.5 (0.2) 0.8 1.4 0.2 1.7 2.7 6.1 19.9
EBITDA (14.9) (8.6) 0.8 0.4 0.9 0.2 2.3 1.9 0.7 2.2 3.2 7.9 22.3
Exchange Rate (INR/USD) 48.58 46.40 46.30 45.72
Source: Company reports, Oppenheimer & Co. estimates
40
MakeMyTrip Limited
41
MakeMyTrip Limited
Payment Gateway
Non-GAAP Operating Income
Pre-tax Income
Non-GAAP Net Income
GAAP Net Income
Others 1308% 118% 42% 140% 13% 64% 90% 95% 100% 120% 167% 95%
Total revenues 79% 13% 13% 13% 13% 22% 16% 16% 16% 16% 33% 32%
Service Cost 100% -9% -9% -9% -9% -1% -6% -6% -6% -6% 14% 7%
Net revenues 52% 71% 71% 71% 71% 61% 46% 46% 46% 46% 53% 52%
Total Gross Bookings 39% 55% 55% 55% 55% 49% 59% 59% 59% 59% 56% 45%
Total Transactions 45% 41% 36% 31%
Payment Gateway
Non-GAAP Operating Income
Pre-tax Income
Non-GAAP Net Income
GAAP Net Income
Diluted EPS -37.4% -106.7% -102.0% -124.9% -100.6% -113.3% 138.2% 232.2% 110.2% 5650.1% 262.9% 162.1%
42
MakeMyTrip Limited
43
MakeMyTrip Limited
Investment Thesis
We are bullish on the growth prospects of India's largest OTA (48% share of gross bookings) on both revenues and margins. We
forecast top line growth of 52% in FY11 and FY12 and expect margins to expand 40bps from FY10 to FY12. Growth levers such as LCC
growth, especially at the domestic level, rise in credit/debit card penetration levels and increasing internet penetration are positive for the
name, in our view. However, we believe at current levels near-term valuation is stretched. Since its IPO (Aug 12), MMYT has catapulted
~150% from its offer price of $14, and we believe the upside from current levels is limited.
Rating and Price Target History for: Ctrip.com International Ltd. (CTRP) as of 09-22-2010
50
40
30
20
10
0
2008 2009 2010
Created by BlueMatrix
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MakeMyTrip Limited
Rating and Price Target History for: MakeMyTrip Limited (MMYT) as of 09-22-2010
09/22/10
I:P:NA
45
40
35
30
25
20
2008 2009 2010
Created by BlueMatrix
All price targets displayed in the chart above are for a 12- to- 18-month period. Prior to March 30, 2004, Oppenheimer &
Co. Inc. used 6-, 12-, 12- to 18-, and 12- to 24-month price targets and ranges. For more information about target price
histories, please write to Oppenheimer & Co. Inc., 300 Madison Avenue, New York, NY 10017, Attention: Equity Research
Department, Business Manager.
Outperform(O) - Stock expected to outperform the S&P 500 within the next 12-18 months.
Perform (P) - Stock expected to perform in line with the S&P 500 within the next 12-18 months.
Underperform (U) - Stock expected to underperform the S&P 500 within the next 12-18 months.
Not Rated (NR) - Oppenheimer & Co. Inc. does not maintain coverage of the stock or is restricted from doing so due to a potential
conflict of interest.
Oppenheimer & Co. Inc. Rating System prior to January 14th, 2008:
Buy - anticipates appreciation of 10% or more within the next 12 months, and/or a total return of 10% including dividend payments,
and/or the ability of the shares to perform better than the leading stock market averages or stocks within its particular industry sector.
Neutral - anticipates that the shares will trade at or near their current price and generally in line with the leading market averages due to
a perceived absence of strong dynamics that would cause volatility either to the upside or downside, and/or will perform less well than
higher rated companies within its peer group. Our readers should be aware that when a rating change occurs to Neutral from Buy,
aggressive trading accounts might decide to liquidate their positions to employ the funds elsewhere.
Sell - anticipates that the shares will depreciate 10% or more in price within the next 12 months, due to fundamental weakness
perceived in the company or for valuation reasons, or are expected to perform significantly worse than equities within the peer group.
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MakeMyTrip Limited
IB Serv/Past 12 Mos.
Although the investment recommendations within the three-tiered, relative stock rating system utilized by Oppenheimer & Co. Inc. do not
correlate to buy, hold and sell recommendations, for the purposes of complying with FINRA rules, Oppenheimer & Co. Inc. has assigned
buy ratings to securities rated Outperform, hold ratings to securities rated Perform, and sell ratings to securities rated Underperform.
Oppenheimer & Co. Inc. expects to receive or intends to seek compensation for investment banking services in the next 3
months from MMYT.
In the past 12 months Oppenheimer & Co. Inc. has managed or co-managed a public offering of securities for MMYT.
In the past 12 months Oppenheimer & Co. Inc. has received compensation for investment banking services from MMYT.
Oppenheimer & Co. Inc. makes a market in the securities of MMYT, CTRP, EXPE, and PCLN.
Please log on to http://www.opco.com or write to Oppenheimer & Co. Inc., 300 Madison Avenue, New York, NY 10017,
Attention: Equity Research Department, Business Manager.
Other Disclosures
This report is issued and approved for distribution by Oppenheimer & Co. Inc., a member of all Principal Exchanges and SIPC. This
report is provided, for informational purposes only, to institutional and retail investor clients of Oppenheimer & Co. Inc. and does not
constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be
prohibited. The securities mentioned in this report may not be suitable for all types of investors. This report does not take into account
the investment objectives, financial situation or specific needs of any particular client of Oppenheimer & Co. Inc. Recipients should
consider this report as only a single factor in making an investment decision and should not rely solely on investment recommendations
contained herein, if any, as a substitution for the exercise of independent judgment of the merits and risks of investments. The analyst
writing the report is not a person or company with actual, implied or apparent authority to act on behalf of any issuer mentioned in the
report. Before making an investment decision with respect to any security recommended in this report, the recipient should consider
whether such recommendation is appropriate given the recipient's particular investment needs, objectives and financial circumstances.
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MakeMyTrip Limited
We recommend that investors independently evaluate particular investments and strategies, and encourage investors to seek the advice
of a financial advisor.Oppenheimer & Co. Inc. will not treat non-client recipients as its clients solely by virtue of their receiving this
report.Past performance is not a guarantee of future results, and no representation or warranty, express or implied, is made regarding
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Copyright © Oppenheimer & Co. Inc. 2010.
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