Buy Matrimony.com; target of Rs 800: ICICI Direct

ICICI Direct's research report on Matrimony.com

Matrimony.com Ltd’s (Matrimony) revenues increased 7.5% QoQ (up 1.1% YoY) mainly led by 7.6% QoQ growth (up 4.6% QoQ) in matchmaking services (led by 25.7% YoY growth in paid subscribers). EBITDA margins were flat QoQ (up 250 bps YoY) at 17.7%. Net profit increased 9.6% QoQ (up 31.2% YoY) to Rs 10.3 crore. Billing increased 18.5% QoQ (9.7% YoY) mainly led by 18.5% QoQ (13.5% YoY) growth in matchmaking services.

Outlook

This coupled with 27% CAGR in PAT in FY20-23E prompts us to maintain BUY recommendation on the stock with revised target price of Rs 800/share (30x FY23E EPS, 3.0x FY23E sales).

For all recommendations report, click here