⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
INDIAMART - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | INDIAMART | Market Cap | 13,243 Cr. | Current Price | 2,208 ₹ | High / Low | 2,799 ₹ |
| Stock P/E | 19.3 | Book Value | 373 ₹ | Dividend Yield | 1.36 % | ROCE | 37.7 % |
| ROE | 30.0 % | Face Value | 10.0 ₹ | DMA 50 | 2,246 ₹ | DMA 200 | 2,362 ₹ |
| Chg in FII Hold | -3.25 % | Chg in DII Hold | 3.42 % | PAT Qtr | 206 Cr. | PAT Prev Qtr | 83.5 Cr. |
| RSI | 50.1 | MACD | -11.0 | Volume | 34,293 | Avg Vol 1Wk | 69,932 |
| Low price | 1,850 ₹ | High price | 2,799 ₹ | PEG Ratio | 0.77 | Debt to equity | 0.01 |
| 52w Index | 37.8 % | Qtr Profit Var | 65.0 % | EPS | 114 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Revenue & Profitability: PAT rose sharply from 83.5 Cr. to 206 Cr. QoQ (+65%), showing strong earnings momentum.
- Margins: ROE at 30.0% and ROCE at 37.7% are excellent, reflecting strong efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.01 indicates a virtually debt-free balance sheet, ensuring financial stability.
- Cash Flow: Dividend yield of 1.36% provides modest shareholder reward.
💹 Valuation Indicators
- P/E Ratio: 19.3 vs Industry PE of 27.6 → undervalued compared to peers.
- P/B Ratio: Current Price (2,208 ₹) / Book Value (373 ₹) ≈ 5.9, relatively expensive on book value basis.
- PEG Ratio: 0.77 indicates valuation is reasonable relative to growth prospects.
- Intrinsic Value: Current price near support (1,850 ₹) suggests attractive entry zone compared to historical highs (2,799 ₹).
🏦 Business Model & Competitive Advantage
- IndiaMART operates as a leading B2B e-commerce marketplace, connecting buyers and suppliers across industries.
- Competitive advantage lies in strong brand recognition, wide supplier network, and digital-first business model.
- Overall health is robust, with consistent profitability, high returns, and minimal debt.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 1,950 ₹ – 2,100 ₹, near support levels.
- Long-Term Holding: Strong fundamentals and undervaluation relative to industry PE make IndiaMART suitable for long-term investors seeking growth and stability.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Strong ROE (30.0%) and ROCE (37.7%).
- Undervalued compared to industry PE (19.3 vs 27.6).
- Quarterly PAT growth (+65%) shows strong momentum.
⚠️ Limitation
- P/B ratio (5.9) indicates expensive valuation relative to book value.
- Dividend yield of 1.36% is modest.
- Technical weakness with price trading below DMA 200 (2,362 ₹).
📉 Company Negative News
- FII holdings decreased (-3.25%), showing reduced foreign investor confidence.
- MACD (-11.0) indicates bearish technical momentum.
📈 Company Positive News
- DII holdings increased (+3.42%), reflecting strong domestic institutional support.
- PAT surged significantly QoQ, showing strong operational performance.
🏭 Industry
- Industry PE at 27.6 is higher than IndiaMART’s PE, highlighting undervaluation.
- B2B e-commerce sector growth driven by digital adoption and SME participation.
- IndiaMART benefits from strong brand presence and network effects.
🔎 Conclusion
- IndiaMART offers strong fundamentals, excellent return ratios, and a debt-free balance sheet.
- Valuation is attractive compared to industry peers, making it a good long-term holding.
- Best suited for investors entering near 1,950–2,100 ₹, with potential upside as fundamentals remain strong and digital adoption accelerates.
I can also prepare a comparative HTML report of IndiaMART versus other digital marketplace companies to highlight relative valuation and growth potential.