Motilal Oswal's research report on IndiaMART
IndiaMART (INMART) reported 1QFY26 revenue growth of 12% YoY vs. our estimate of 10% YoY growth. Deferred revenue rose 16% YoY to INR17b. EBITDA margin was down ~90bp QoQ to 36%, in line with our estimates of 36.4%. PAT stood at INR1,531m, down 15% QoQ/up 35% YoY, beating our estimate of INR1,204m due to higher other income and lower depreciation. For 1QFY26, revenue/EBITDA/PAT grew 12.3%/11.6%/35.0% YoY. We expect revenue to grow 10%, whereas EBITDA/PAT would decline 6%/15% YoY in 2QFY26. We reiterate our BUY rating on the stock, citing undemanding valuations, with a TP of INR3,050.
Outlook
We value INMART on a DCF basis to arrive at our TP of INR3,050, assuming 11.5% WACC and 6% terminal growth. Reiterate BUY.
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