Q4 results review: IndiaMART InterMESH zooms 10% despite target price cuts as Q4 PAT jumps 79%

The banal roseate arsenic overmuch arsenic 10 percent to its day's precocious of ₹2,913. With today's rally, banal has precocious 21.6 percent from its 52-week debased of ₹2,395, deed connected January 1, 2024. However, it is inactive 11.5 percent distant from its 52-week precocious of ₹3,293.45, deed connected September 7, 2023.

The scrip has mislaid astir 6 percent successful the past 1 twelvemonth but has gained 7 percent successful 2024 YTD. It has been level successful April (up 0.09 percent) and March (down 0.2 percent). Meanwhile, it roseate 5.3 percent successful February aft a 7.5 percent diminution successful January this year.

Read here: Adani Ports Q4 nett net jumps 76% YoY to ₹2,040 cr; ₹6 dividend declared

The company's consolidated nett net jumped 79 percent year-on-year (YoY) to ₹99.6 crore successful Q4FY24 versus ₹55.8 crore successful the aforesaid play past fiscal. Meanwhile, its gross roseate 17 percent YoY to ₹315 crore successful the 4th nether reappraisal from ₹269 crore successful the year-ago period.

For the full fiscal twelvemonth FY24, the institution posted a 17.7 percent YoY leap successful its consolidated nett net to ₹334 crore arsenic against ₹283.8 crore successful FY23. Also, its consolidated gross for FY24 accrued 21.45 percent to ₹1,196.8 crore from ₹985.4 crore successful FY23.

Read here: REC jumps 9.5% to grounds precocious connected beardown Q4 results, soars 30.5% successful 8 sessions

Q4 Results Review

Post the March 4th results, brokerages Nuvama and Nomura, retained their neutral outlook but reduced the people terms for the banal connected the backmost of its costly valuations. However, home brokerage Choice raised its people terms for the banal with a bargain call.

Nuvama: The brokerage chopped its people terms connected the institution to ₹2,650, down from ₹2,800 portion maintaining its 'hold' call. It besides chopped its net estimates for FY25 and FY26 by 3.7 percent and 2.9 percent, respectively, to origin successful little maturation station the March 4th results. The brokerage besides noted that paid supplier summation for the steadfast continues to stay subdued arsenic churn successful the metallic class remains elevated.

"IndiaMart has delivered accordant maturation since Covid-19, with a premix of measurement and higher realisation. However, implicit the past 3 quarters, this maturation has mostly been driven by higher realisation. While we admit the company's beardown presumption and enactment successful the B2B e-commerce marketplace, we judge that elevated churn would support subscriber summation counts lower, thereby impacting collection/revenue growth," it said.

Read here: Q4 results review: Havells India shares deed grounds precocious contempt MOSL downgrade

Nomura: Nomura besides reiterated its 'neutral' stance connected the steadfast but reduced its people terms to ₹2,520 from ₹2,530 earlier.

Nomura noted that the caller terms hike and the basal effect of precocious subscriber additions successful FY23 contributed to the elevated churn rates successful the metallic class for IndiaMART. The brokerage expressed interest implicit the company's concern model, highlighting anemic maturation successful concern inquiries and precocious subscriber additions arsenic factors that pb to diminishing returns for paying subscribers. These issues suggest imaginable challenges successful the company's attack to lawsuit acquisition and retention, which could interaction its wide concern performance.

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Choice: Contrary to the different 2 brokerage views, Choice maintained its bargain telephone connected the banal and raised its people terms of ₹2,985.

IndiaMart continues to marque investments successful strengthening their organisation to leverage the maturation opportunities. Growth volition beryllium driven by caller sales, work and selling head, absorption connected tier1 and tier 2 suppliers and ARPU maturation successful the golden and platinum segment, it rationaled.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 02 May 2024, 03:13 PM IST