IndiaMART InterMESH Ltd. share price target

IndiaMART (INMART) reported 3QFY25 revenue growth of 16% YoY/1.9% QoQ, in line with our estimate of 17.6% YoY growth. Collection growth was 10% YoY at INR3.6b.

We maintain our BUY recommendation on the stock.

Despite the unexpectedly weak, ~5.6% y/y, collections growth to Rs3.6bn, IndiaMart’s Q2 revenue rose ~18% y/y, in line with our estimate.

IndiaMART (INMART) reported 2QFY25 revenue growth of 18% YoY/5% QoQ, in line with our estimate of 18.8% YoY growth.

Quarterly Update Q1FY25

IndiaMART (INMART) delivered a decent 1QFY25 performance, with revenue rising 17% YoY/5% QoQ, above consensus estimates.

Given the company's strong growth potential backed by a robust product profile with a leading market share and superior execution capabilities, we maintain our BUY recommendation on the stock.

Quarterly Update Q4FY24

Given the company's strong growth potential backed by a robust product profile with a leading market share and superior execution capabilities, we maintain our BUY recommendation on the stock.

While its cash collection grew 16% y/y to Rs4.8bn, IndiaMart’s Q4 FY24
17.1% y/y revenue growth came in line with our estimate.

Given the company's strong growth potential backed by a robust product profile with leading market share and superior execution capabilities, we maintain our BUY recommendation on the stock.

Quarterly Update Q3FY24

We recommend a BUY rating on the stock and assign a 40x P/E multiple to its FY25E earnings of Rs 90.76/share to arrive at a TP of Rs 3,625/share, implying an upside of 31% from the CMP.

Quarterly Update Q2FY24

In Q2FY24, IndiaMart added ~2K (net adds.) paying subscribers (~4.7K in Q1FY24). This was significantly lower than expectations (I-Sec est.: 5.5K) and management outlook shared in Q1FY24 conference call. The shortfall was attributed to muted gross additions in response to price hikes taken in May’23.

Recommendation: We recommend a BUY with TP of Rs. 3,430/share, implying an upside of 11% from the CMP.

Given the company's strong growth potential backed by a robust product profile with leading market share and superior execution capabilities, we maintain our BUY recommendation on the stock

Quarterly Update Q1FY24

IndiaMART’s strong revenue growth trajectory was maintained in Q1FY24 with ~26% YoY revenue growth. However, new subscriber addition was significantly lower than expectations (4,993 vs I-Sec. est. of 8,000). Our channel checks indicate >10% price increases were taken in base packages (price sensitive) mid-Q1FY24.