IndiaMART InterMESH Ltd will share its third-quarter results this Monday. Experts believe the company could earn between Rs 133.4 crore and Rs 140.5 crore in profit after tax (PAT), which would be an increase of about 63% to 72% from last year. They also predict that the revenue for the quarter ending in December 2024 will grow by about 15.4% to 15.5%, reaching between Rs 352.4 crore and Rs 352.7 crore.
On Friday, shares of IndiaMART went up nearly 2% to Rs 2,283.05 on the BSE. Despite this recent increase, the stock has dropped 12.24% over the past year and 24.87% in the last three months, indicating some struggles for the company.
Brokerage JM Financial expects IndiaMART to add only 1,800 new paying suppliers this quarter, much less than the average of 4,500 per quarter. They believe this slower growth is due to seasonal challenges and high cancellation rates in some subscription types. Revenue growth is expected to be around 15.5%, backed by strong deferred revenue, and collections could grow by 6% compared to last year. They estimate that the company’s earnings margins will improve by about 780 basis points due to lower operational costs, predicting a PAT of Rs 133.4 crore for the December quarter.
On the other hand, Nuvama predicts a stronger increase in subscribers, estimating 2,500 new additions this quarter, along with a 15.4% growth in revenue. However, they think margins might decrease slightly by 30 basis points, which would take it to 38.4%. Nuvama estimates the PAT could reach Rs 140.5 crore, thanks to good revenue collection. They also emphasize the need to keep an eye on subscription trends and the company’s plans for future growth.
In the last quarter (Q2FY25), IndiaMART reported a PAT of Rs 135.1 crore, which was an impressive 95% increase from the same time last year, along with an 18% bump in revenue to Rs 348 crore. The company credits cost-saving measures and strong future revenues for its good results.
Market feelings about the stock are mixed. Of the 20 analysts who follow IndiaMART, nine suggest buying the stock, four say to hold it, and seven recommend selling. The average target price for the stock is Rs 2,862 per share, indicating it could go up from where it currently stands.
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