Nuvama has maintained its ‘Reduce’ rating on IndiaMART InterMESH, reducing the target price to ₹1,970 from ₹2,500, representing a downside of approximately 14% from the current market price of ₹2,296.00.
The brokerage highlights that IndiaMART has reported a decline in subscribers for the first time since the COVID-19 pandemic. Collection growth for the standalone business remains subdued at 8% year-on-year, while management has guided for less than 10% growth in collections in the upcoming quarters.
On the profitability front, lower sales and marketing costs are expected to provide some short-term relief. However, the company has yet to see significant improvements in subscriber retention, and medium-term growth is anticipated to remain under pressure.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
