MakeMyTripe.l.f. Beauty

MakeMyTrip vs e.l.f. Beauty

MakeMyTrip leads online travel booking across India and Southeast Asia, riding a long-term structural rise in middle-class travel, while e.l.f. Beauty sells affordable cosmetics through mass-market U....

Investment Analysis

Pros

  • Delivered a 94.7% EPS beat in Q2 2025, demonstrating robust cost control and profitability despite a revenue miss.
  • Achieved 18.1% revenue growth over the past year, highlighting strong underlying demand in India’s rapidly recovering travel market.
  • International business contributed 28% of revenue with notable growth in air and hotel segments, diversifying geographic exposure.

Considerations

  • Q2 2025 revenue fell 12.3% short of expectations, raising questions about near-term top-line momentum and execution.
  • Valuation appears elevated with a trailing PE ratio above 114, potentially pricing in much of the growth already.
  • Recent trading signals and technical analysis suggest a bearish short-term trend, despite analyst optimism on fundamentals.

Pros

  • Consistently posts industry-leading revenue growth, supported by expansion into new product categories and international markets.
  • Maintains a strong position in the clean, vegan, and cruelty-free beauty segment, resonating with shifting consumer preferences.
  • Recent acquisition of Hailey Bieber’s Rhode brand may further accelerate growth and enhance product portfolio diversity.

Considerations

  • Valuation multiples remain high, with a trailing PE ratio near 70 and forward metrics even loftier, reflecting premium expectations.
  • Q2 2026 revenue missed estimates by 6.5%, signalling potential growth deceleration or increased competitive pressures.
  • The stock’s high beta (1.4) indicates pronounced volatility, which may deter more conservative investors.

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Frequently asked questions

MMYT
MMYT$47.49
vs
ELF
ELF$69.25