Jefferies has downgraded IndiaMart from Buy to Underperform, lowering its target price to Rs 2540, reflecting a 15% downside. While the company delivered in-line Q2 results, the softness in subscriber additions led to collection growth moderating to 5% year-on-year, which Jefferies flagged as a key negative.
The brokerage expects collections growth to remain in the 10-15% range unless subscriber growth improves. Jefferies also noted concerns over subscriber churn, which has continued to surprise negatively despite management’s efforts to address the issue. The firm cut its estimates for IndiaMart by 4-12% due to these ongoing challenges.
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