IndiaMART Shares Hit Fresh 52-Week Low At INR 1,980.50

IndiaMART InterMESH Shares Hit Fresh 52-Week Low At INR 1,980.50

SUMMARY

Shares of IndiaMART InterMESH fell over 1% to hit a fresh 52-week low of INR 1,980.50 apiece on the BSE on February 25

The stock has been under pressure since the company reported weaker-than-expected Q3 FY25 earnings

Brokerage Nomura downgraded the stock to ‘reduce’ from ‘neutral’ while cutting the target price to INR 1,900 from INR 3,150

Shares of IndiaMART InterMESH fell over 1% in early trade today (February 25) to hit a fresh 52-week low of INR 1,980.50 apiece on the BSE. The stock has tanked over 12% in the past month after the company announced its earnings for the quarter ended December 2024.

Brokerages are bearish on the stock despite the B2B online marketplace reporting a 48% jump in its consolidated net profit at INR 121 Cr in Q3 FY25. On a quarter-on-quarter basis, profit fell 10.4% from NR 305.3 Cr.

IndiaMART’s revenue from operations rose 16% year-on-year to INR 354.3 Cr during the quarter under review. Sequentially, its operating revenue was largely flat.

Following its Q3 earnings, Nomura downgraded IndiaMART InterMESH to ‘reduce’ from ‘neutral’, slashing its target price to INR 1,900 per share from INR 3,150 apiece earlier. The brokerage noted that the company reported an “unexpected” decline in its paying subscriber base in the December quarter due to weak additions in the last five quarters.

It expects low gross addition and high customer churn to weigh on growth in IndiaMART’s collections in the near to medium term.

Meanwhile, Nuvama maintained its ‘reduce’ rating on shares of IndiaMART while reducing the target price to INR 1.970 from INR 2,500. The decision followed the decline in the company’s subscriber base in Q3 FY25, the first time since the COVID-19 pandemic.

Founded in 1999 by Dinesh and Brijesh Agarwal, IndiaMART is one of the oldest internet firms in India. The company connects buyers with sellers across 58 industries and 98K product categories such as consumer electronics, chemicals & dyes, construction and raw materials, clothing and apparel, cosmetics and personal care, pharmaceuticals and automobiles among others.

The company has invested in several new-age tech companies to spruce up revenue and expand its offerings. Its investment portfolio includes fintech startup Vyapar, legal tech startup Legistify, fraud detection startup IDfy, omnichannel inventory and warehouse management startup EasyEcom, HR tech startup Zimyo, logistics automation startup Fleetx, among others.

In November last year, IndiaMART said it would acquire an additional stake in Mobisy Technologies, which operates SaaS startup Bizom, for a cash consideration of INR 14.3 Cr.

IndiaMART InterMESH shares ended Tuesday’s trading session 0.22% lower at INR 2,000 on the BSE.