IndiaMART rallies 78% from IPO issue price, hits all-time high in last 9 sessions

IndiaMART InterMESH

Earnings before interest, tax, depreciation and amortization jumped 192 percent YoY to Rs 38 crore. As of June 31, 2019, the company’s cash and investments stands at Rs 739 crore.

On the liquidity front, the company’s stands at a comfortable place. Average volume since the listing is at 2.5 lakh shares. So, on the basis of high stock price, the average turnover stands at Rs 35 crore.

Edelweiss in a report said, “We are seeing a strong network effect at play. Growth in suppliers is luring more buyers and driving business enquiries, which in turn is attracting more sellers too. We believe IndiaMART is on the cusp of strong profit growth momentum led by revenue growth and high operating leverage.”

The brokerage initiated coverage on IndiaMART with a ‘BUY’ and ‘Sector Outperformer’ rating. The target price is at Rs 1,900 based on 33x Q3FY21E EPS. Expect the company to generate an earnings CAGR of 50 percent over FY19–21 driven by strong revenue growth and high operating leverage, said the brokerage in the September 12 report.

IndiaMART InterMESH's Trend Over The Years

As of promoter holding, the shareholding structure, as on 30 June 2019, involves 53 percent promoter and promoter group holding, with 23 percent of foreign ownership and 7 percent owned by mutual funds, banks and alternative investment funds. Post-IPO, Intel Capital, Amadeus IV DPF and Accion Frontier Inclusion hold an aggregate of 12.5 percent of the company.

Founded in 1999, the company has 60 percent market share of the online B2B classified space in India, and caters about 82.7 million buyers, 5.55 million suppliers and 60.73 million products and services. The company has 2,915 employees located across 72 offices in the country.