Anand Rathi's research report on IndiaMart InterMesh
Despite the unexpectedly weak, ~5.6% y/y, collections growth to Rs3.6bn, IndiaMart’s Q2 revenue rose ~18% y/y, in line with our estimate. The elevated EBITDA margin (38.7%; 27.1% a year ago, 36.1% in Q1 FY25) was largely due to lower outsourced sales cost (~6.2% of revenue vs. ~12.6% a year ago). Management has guided to ~10-15% increase in collections, along with ~34-35% margins in the near term.
Outlook
We introduce our FY27e earnings and retain a Buy rating at a lower 12-mth TP of Rs3,100 (Rs3,800 earlier), P/E of 30x FY27e EPS.
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