 Good day fellow investor. In the video where I analyzed India and its economic outlook and Indian perspectives about investment we analyzed Indian ADRs and I said I will look into them more deeply. So in this video I will analyze Make My Trip Limited and Yatra Online which are two online travel agents in India. So first let's start with the analysis of the Indian tourism situation. Travel and tourism in India is expected to more than double its contribution to Indian GDP in line with GDP growth in India. What is especially expected to grow is the air travel forecast. So especially these companies that offer online platforms to book flights. India is a very big country so we can expect a similar boom in the air industry as it happened in China and still happening in China. Technology adoption is surging from a low base so very fast growth in smartphone ownership penetration rate is still low when compared to the rest of the world and the number of internet users is still low. So let's start immediately with Make My Trip Limited and you can see how volatile the stock price is. It IPOed at around 33, 34, 6 years ago then it dropped to a price of 12 then it went up to 30 again then it dropped again to 12, 14 and now we are again around 33 after reaching 38, 40 a while ago. This is normal for a growth stock and the stock that is not profitable so you must take notice of that that this stock isn't profitable. Nevertheless Make My Trip showed excellent financials. If you look at growth then their numbers are staggering. Revenue increased 35% in the last quarter, 36% here over year so that's excellent numbers. All those numbers are growing, growing and growing so it's a really growing online company. They also expect the markets to boom domestic air international airlines and they want to take advantage of that market. Here you can see their gross bookings they have been constantly growing and their revenue has also been constantly growing especially what is growing is the hotel part of the revenue to travel part but also the airline part so really a growth content. Nevertheless the adjusted operating profit is not that good they are losing a lot of money for what they are doing so they are betting that one day as a typical online platform that one day they will break profit and they will be huge. If we look at the earnings per share they are losing $2 per share currently they have been losing 2.12 in 2016 book value per share jumped from 2.23 to 15.32 thanks to an acquisition and issues of share so that's not to take care this is all intangibles. And in addition they recently completed a 340 million equity capital raise so they found investors one of the investors is Ctrip International the Chinese online travel platform so that's very interesting if they're investing in the project and if we look at what Ctrip did in the past we can see how they grow from a very very small base they exploded and also the stock price exploded however the profits were higher prior to explosion than they are now nevertheless the cash flow is pretty higher so there is potential and now with the Ctrip invested into make my trip it looks very very interesting especially as we know that they invested these high prices nevertheless Ctrip is also very overvalued they used 20 billion in renminbi to grow to keep their growth they're not as profitable as they could be so it's a very very competitive environment so to finish with make my trip yes it has a lot of potential but then it has to be such a part of your portfolio this is the part of portfolio that I invest in huge potential online platforms and make my trip is certainly such a platform however their market cap is now 3 billion and their revenue is only 448 million so in order to reach the price earnings ratio of 10 that would make it an interesting investment they need to grow 10 times will they grow 10 times probably they will in the next 10 years but who knows how many ups and downs will they more be so a bad quarter something going not as planned would really drop the stock price down as it has been already case two times in the past six years so be very careful and look at a specific part of your portfolio if you're interested in such investments the second company I will discuss is Yatra which is the second largest online travel platform I think it's 10 times smaller than make my trip so a small player nevertheless it's constantly growing over the years the average transaction is growing they are focused on lower budget hotels and I think on lower budget airlines they are also not profitable they are losing money with their operations they lost one billion rupees in the last 12 months so they really have difficulties in breaking a profit and they lost one billion on revenues of nine billion so that's a very big hurdle to reverse so both companies are losing money they're interesting place because they are growth place they're very very exposed to what's going on in India however this reminds me too much of all the online booms and busts that I have been seeing in the last 15 years platforms jumping out everywhere growth yes customers yes money hemorrhaging money all over the place so be very careful when you invest in such stocks I as a value investors will never invest no matter the potential return because I know the potential loss is very high so I hope I shared some info with you some interesting investing ideas thank you for watching click like if you like the content even if you don't agree with me and please share your comments then in the comment section if you don't agree thank you for watching and I'll see you in the next video