IndiaMART’s stock declined by 10% following its Q2 FY25 results. Despite posting in-line numbers, Jefferies downgraded the stock from “Buy” to “Underperform,” citing concerns over slow collection growth and subscriber churn. The brokerage also reduced its target price to ₹2,540, indicating a 15% downside.
Nuvama followed suit, downgrading IndiaMART to “Reduce” and slashing the target price to ₹2,500, reflecting a 16% potential downside. This was largely due to a sharp slowdown in collection growth, which fell to 5% year-on-year, down from 14% in the previous quarter.
Q2 FY25 Financial Highlights:
- Revenue from operations: ₹347.7 crore, up 18% YoY
- Net profit: ₹135.1 crore, up 95% YoY
- Total income: ₹413.2 crore, up from ₹329.3 crore in Q2 FY24
- Profit before tax: ₹177.3 crore, up from ₹93.3 crore YoY
While IndiaMART continues to grow in web and accounting software services, the challenges in subscriber additions and collection growth have raised concerns among analysts and investors alike.
