Fundamental Analysis

INDIAMART INTERMESH 

Ticker : 542726
BUY: Rs 2532.60
Target: Rs 2800

IndiaMART InterMESH Ltd is an online marketplace, which connects buyers with suppliers and focusses on providing a platform to small and medium enterprises (SMEs), large enterprises as well as individuals. On the consolidated quarterly front, net sales reported by the company amounted to Rs 170.10 crore in Q4FY20, growing by 23.26 per cent as compared to the revenue of Rs 138 crore for Q4FY19. PBDT increased by 94.27 per cent to Rs 67.80 crore in Q4FY20 as against Rs 34.90 crore for Q4FY19. The company reported a net profit of Rs 45 crore in Q4FY20, up by 59.57 per cent from Rs 28.20 crore in the same period for the previous fiscal year. The nationwide lockdown is likely to accelerate digital adoption, implying a higher growth potential over the mediumto- long term for the company. Owing to this growth potential and the company’s strong performance in the latest quarter, we recommend a BUY.