IndiaMart’s Q2 performance has led to a series of downgrades from brokerages as collection growth slowed significantly, and subscriber additions remained weak. Here’s a look at what major analysts are saying about IndiaMart:
Nuvama: Downgrade to Reduce, target price cut to Rs 2500, sees 16% downside
Nuvama has downgraded IndiaMart from Hold to Reduce, lowering the target price to Rs 2500, reflecting a 16% downside. Collection growth for Q2 dropped sharply to 5% year-on-year, down from 14% in Q1FY25, and is expected to stay in low-double digits. This slowdown is likely to start hurting revenue growth moving forward. Nuvama noted that while margins have improved due to lower marketing expenses, the risk of further growth underperformance has increased. The only positive takeaway was a 14% year-on-year growth in unique business inquiries.
Jefferies: Downgrade to Underperform, target price cut to Rs 2540, sees 15% downside
Jefferies has downgraded IndiaMart from Buy to Underperform, with a target price of Rs 2540, implying a 15% downside. Although IndiaMart delivered in-line results, the continued softness in subscriber additions led to collections growth moderating to 5% year-on-year. Jefferies believes that collections growth will likely stay between 10-15% unless there’s an improvement in subscriber additions. The firm cut its estimates for IndiaMart by 4-12%, highlighting that subscriber churn remains an ongoing concern despite several management interventions.
The current market price (CMP) of IndiaMart is Rs 2,983.00.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Please consult a financial advisor before making any investment decisions.
