IndiaMART InterMESH Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 22120.04 Crore) operating in Services sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 211.00 Crore, up 10.99 % from last quarter Total Income of Rs 190.10 Crore and up 12.96 % from last year same quarter Total Income of Rs 186.80 Crore. Company reported net profit after tax of Rs 89.40 Crore in latest quarter.
Investment Rationale
Apart from collections and revenue growth, IndiaMART has shown higher resilience on the margin front. While the brokerage concurs that margins at current levels are unsustainable, it would see positive benefits from cost optimization and operating leverage in the long term. The brokerage remains confident of strong fundamental growth in operations, led by a) higher growth in digitization among SMEs (~25%), b) the need for out-of-thecircle buyers, c) a strong network effect, d) over 70% market share in the underlying industry, e) the ability to increase ARPU on low price sensitivity, and f) high operating leverage.
Promoter/FII Holdings
Promoters held 49.8 per cent stake in the company as of June 30, 2021, while FIIs held 26.8 per cent, DIIs 4.7 per cent and public and other 18.6 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
