MakeMy Trip Limited (NASDAQ: MMYT) was a top gainer in yesterday’s trading session. The stock gained upside momentum all through the day to close with gains of 21.16%. This came after the company announced that, it was making its co-founder and India CEO the group CEO. At his new role, he will be responsible for oversight on the company’s top brands namely: Redbus, MakeMy Trip and Goibibo.
The current group CEO Deep Karla will now move to the new position of executive chairman. He will be responsible for managing the company’s innovations, geographic expansion, corporate governance, and improving the company’s business model.
The changes in leadership were made alongside an announcement of the company’s financial results for Q3 of 2020. When making the announcement, both the new executive chairman and the group CEO sent a word of caution to investors with regards to the company’s growth, stating that, growth will be moderate. They attributed this to the possibility of India’s economy slowing down in the upcoming financial year. The two also cited the coronavirus as a factor that could impact on growth in the coming financial year.
Nonetheless, the company has experienced growth in its loyalty program. The two executives have been pushing it since 2018 and it is bearing fruit. Presently, the company has 139k members on its paid subscription plan, and 1.1 million members are already enrolled on its free plan. Then company further stated that, it continues to invest in the free loyalty program even as it aggressively pushes the paid one.
Looking at its price action, the stock opened at $25.36 and rallied in the day to hit a high of $29.32. It then closed the day at $29.32. Volumes in the day stood at 1.21 million.
About MakeMy Trip Limited
MakeMy Trip Limited is an online travel company and operates in India, the U.S, and several other countries. It is headquartered in Gurugram, India.