Shares of IndiaMART InterMESH surged over 5% in Wednesday’s session after brokerage firm Nuvama upgraded the stock from ‘Reduce’ to ‘Buy’, citing a revival in growth momentum for the online marketplace company. The brokerage also raised its target price sharply from ₹2,100 to ₹3,800, implying a potential upside of 52% from Tuesday’s closing levels.
IndiaMART shares climbed as much as 6.25% in early trade to hit an intraday high of ₹2,650. By 9:20 AM, the stock was trading at ₹2,625, up 5.25%. This outperformed the broader BSE Sensex, which was up 0.47% at 82,444.77 points at the time.
Nuvama’s upgrade comes after management initiatives aimed at boosting platform engagement and subscriber growth. The brokerage highlighted steps like platform improvements, brand marketing investments, and salesforce insourcing as key drivers for the demand upcycle.
The brokerage has also revised its earnings estimates for FY26 and FY27 upwards by 9-10%, factoring in stronger revenue expectations. Although profit margins are expected to normalize to the mid-30% range, Nuvama believes this will not dampen investor sentiment.
IndiaMART currently trades at a one-year forward P/E of 28x, compared to its post-listing average of 45x. Nuvama has raised the target valuation multiple back to 35x, citing improved growth prospects and collection recovery momentum.
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