Buy IndiaMart InterMesh; target of Rs 5500: Anand Rathi

Anand Rathi's research report on IndiaMart InterMesh

IndiaMart’s Q3 FY23 revenue grew 33.7% y/y, 4.5% q/q to Rs2.51bn (org. 28.1% y/y, 4.8% q/q), largely because of 6,263 paid suppliers added in the quarter, up 24.7% y/y, 3.3% q/q, to 194,000 now (156,000 a year ago and 188,000 the previous quarter). Deferred revenue grew 28.5% y/y, 3.2% q/q, to Rs10.15bn. Collections rose 28.1% y/y to Rs2.83bn. Management looks to add ~8,000 customers per quarter in the long term and aims at ~20% long-term sustainable collection growth.

Outlook

We retain our Buy rating, with a TP of Rs5,500 (based on DCF, an implied PE of 40x FY25e EPS).

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