Review

INDIAMART INTERMESH

Ticker : 542726  
FV: Rs 10
52-Week H/L: Rs 2,862.00/952.00

We had previously recommended IndiaMART InterMESH in vol. 36, no. 31, dated May 25, 2020, when the scrip was trading at Rs 2,532.60. It was recommended based on the company’s growth potential and strong quarterly financial performance. It 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 a consolidated quarterly front, the net sales were reported at Rs 153.10 crore in Q1FY21, increasing by 3.94 per cent from Rs 147.30 in Q1FY20. PBDT more than doubled by 107.91 per cent to Rs 105.20 crore in Q1FY21 from Rs 50.60 crore in Q1FY20. Net profit rose significantly by 129.94 per cent to Rs 74.50 crore in Q1FY21 from Rs 32.40 crore in Q1FY20. Despite the adverse market conditions, the company reported strong financial stability, primarily driven by marginal improvement in realisation of existing customers, which would be beneficial for the company’s future growth as well. Thus, we recommend a HOLD.