On Wednesday, January 22, all eyes will be on IndiaMart Intermesh shares. The company recently announced that its profit for the last quarter, which ended on December 31, 2024, has jumped by 36%. They earned Rs 125 crore compared to Rs 92 crore from the same time last year.
Their revenue also showed growth. IndiaMart made Rs 337 crore from its operations this quarter, which is a 16% increase from Rs 291 crore in the previous year. However, when compared to the last quarter (July to September), revenue only went up a little, by 1.6% from Rs 332 crore. It’s worth noting that the profit after tax (PAT) dropped a bit, by 1.6%, from Rs 127 crore in the previous quarter.
What Analysts Think About IndiaMart’s Future
Nomura’s Take:
Nomura has changed its recommendation on IndiaMart to ‘Neutral’ and has lowered its target price to Rs 1900 from Rs 3150. They are concerned because the number of people paying for subscriptions has unexpectedly dropped, and there aren’t many new customers signing up. They also pointed out that too many customers are leaving, which could hurt future growth. Nomura expects that money coming in might stay weak for a while, and they have also lowered their profit estimates for the next few years by 4-13%.
Nuvama’s Opinion:
Nuvama has kept its recommendation at ‘Reduce’ and has also cut its target price, bringing it down to Rs 1970 from Rs 2500. They noted that for the first time since COVID, the number of subscribers has declined. The growth in money collections for their core business is weak at just 8% compared to last year. Nuvama expects that over the next few quarters, collections will grow by less than 10%. While cutting costs could help profits in the short term, they believe there’s no solid sign of keeping subscribers longer. Thus, they feel that future growth will likely face challenges.
Disclaimer: Recommendations and opinions expressed by these experts are their own and do not reflect those of The Economic Times
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