Additionally, the company also reported an 18% jump in its revenue on a year-on-year basis (YoY) at Rs 348 crore for the second quarter ended September 2024, which stood at Rs 295 crore in the same quarter of the previous fiscal year.
IndiaMartβs EBITDA stood at Rs 134.6 crore, up by 68.3% YoY while the EBITDA margins stood at 38.7% for the quarter against 27.1% reported in the corresponding quarter of the previous financial year.
Post the update, here is what the analysts across various brokerages said:
Nuvama: Reduce| Target price: Rs 2,500
Nuvama downgraded IndiaMartβs rating to reduce from hold while the target price was cut to Rs 2,500 vs Rs 3,070 earlierThe companyβs collection growth slowed sharply to 5% YoY from 14% in Q1FY25 and is likely to stay in low-double digits, which shall start hurting revenue growth going ahead. The margin has improved due to a lower marketing expenditure but there is an increasing risk of further growth underperformance. The only positive takeaway was a 14% YoY growth in unique business inquiries.Motilal Oswal: Buy| Target price: Rs 3,500
Motilal Oswal retained a buy rating on the stock with a target price of Rs 3,500.
The domestic brokerage firm estimates an EBITDA margin of 33.4%/31.0%/32.1% for FY25/FY26/FY27, which should drive a 21% PAT CAGR over FY23-25E.
IndiaMart is expected to deliver a 22% revenue CAGR over FY25-27, aided by sustained paying subscriber additions and strong growth in deferred revenue.
The stock is still seen as a key beneficiary of the technology adoption by Indiaβs MSME universe and a shift to a formalized ecosystem. The company seems poised to drive significant value, owing to its industry leading position in the segment.
Kotak Equities: Sell| Target price: Rs 2,575
Kotak Institutional Equities retained its sell call on IndiaMart while increasing the target price to Rs 2,575 from Rs 2,530
Indiamart posted a standalone 2QFY25 revenue growth of 18.2% yoy, in line with expectations. Revenue growth was driven by ARPU growth of 13.6% yoy and supplier growth of 4.0% yoy. Collections growth, however, disappointed and came in at a sluggish 5% yoy. A declining trajectory of collections growth and lack of concrete measures to revive the same were also noted.
Net customer adds of 2.4k QoQ was also disappointing. Lack of investments toward customer addition resulted in a healthy EBITDA margin of 36%. Kotak said it remains careful of the medium-term growth trajectory.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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