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Buy IndiaMart InterMesh; target of Rs 5500: Anand Rathi

Anand Rathi is bullish on IndiaMart InterMesh has recommended buy rating on the stock with a target price of Rs 5500 in its research report dated November 23, 2022.

November 25, 2022 / 11:11 AM IST
 
 
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Anand Rathi's research report on IndiaMart InterMesh


We recently met the IndiaMart management. 1) With ~38% of India’s MSMEs using the internet for business (vs 90% in China), e-classifieds holds substantial growth potential, 2)Focus on growing collections at a 20% CAGR ahead, 3) FY23 margins should be ~28-28.5% and expand from next year with revenue growth. We see value in the stock owing to network-effect, healthy cash-flows, negative working capital, asset-light model and healthy cash balance of Rs20bn (15% of market cap).



Outlook


We retain our Buy rating and introduce FY25e, with a TP of Rs5,500 (based on DCF, an implied PE of 40x FY25e EPS).


For all recommendations report, click here


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IndiaMart InterMesh - 25 -11-2022 - anand

Broker Research
first published: Nov 25, 2022 11:11 am