Shares of B2B marketplace IndiaMART InterMESH surged by almost 9.5% to INR 2,706.45 during early trading hours on Friday (January 19), following the company’s weak Q3 FY23 earnings report.
IndiaMART reported a 27.4% decline in its consolidated net profit to INR 82 Cr, largely impacted by muted paid subscriber growth. However, its operating revenue saw a 21% YoY jump to INR 305 Cr in Q3 FY24. The company’s paying subscription suppliers grew by 9% YoY, adding 1,826 such suppliers during the period.
After the earnings announcement, IndiaMART’s shares dipped on Thursday but regained momentum on Friday, trading 6.2% higher at INR 2,626.6 on the BSE by 2.15 PM IST.
Nomura upgraded its rating on IndiaMART to ‘neutral’ after the company shared its revised business strategy during the earnings call. However, JM Financial retained its ‘buy’ call but cut its price target to INR 3,150 from INR 3,300 earlier.
IndiaMART announced that it would stop offering silver monthly packages to proprietorship firms in Tier 3/4 cities and shift employees from third-party payroll to its own to enhance retention. The company also plans to focus on increasing traction and business enquiries using social media.
Kotak Institutional Equities, however, has a ‘sell’ rating on IndiaMART, cutting its fair value to INR 2,400 from INR 2,700 earlier, citing earnings and long-term margin cuts due to necessary investments to keep the value proposition relevant to the SME base.
