INDIAMART - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.9

📊 Core Financials

• Revenue & Profit: Quarterly PAT declined from ₹166 Cr. to ₹83.5 Cr. (-34.2% variation).
• Margins: Strong ROE (30.0%) and ROCE (37.7%) indicate efficient capital utilization.
• Debt: Debt-to-equity ratio at 0.01 shows negligible leverage risk.
• Cash Flows: Dividend yield of 1.32% reflects shareholder-friendly policy and healthy cash generation.

💹 Valuation Indicators

• P/E Ratio: 22.2 vs Industry PE of 30.1 → relatively undervalued.
• P/B Ratio: Current Price ₹2,235 / Book Value ₹373 ≈ 6.0 (premium valuation).
• PEG Ratio: 0.88 → attractive relative to growth prospects.
• Intrinsic Value: Fairly valued with potential upside if earnings stabilize.

🏢 Business Model & Competitive Advantage

• IndiaMART is a leading B2B e-commerce marketplace connecting buyers and suppliers.
• Strong brand recognition and network effect provide competitive advantage.
• Asset-light model with high scalability and strong margins.

📈 Entry Zone & Long-Term Guidance

• Entry Zone: Attractive accumulation between ₹1,850–₹2,050.
• Long-Term Holding: Strong fundamentals and growth potential make it suitable for long-term investors, despite short-term profit volatility.

✅ Positive

• High ROE (30%) and ROCE (37.7%).
• Low debt-to-equity ratio (0.01).
• FII holdings increased (+2.32%).

⚠️ Limitation

• Quarterly profit dropped sharply (-34.2%).
• High P/B ratio (6.0) indicates premium valuation.
• Weak technical momentum (RSI 42.0, MACD negative).

📉 Company Negative News

• Decline in quarterly profits.
• DII holdings reduced (-2.30%).

📈 Company Positive News

• Strong FII inflows (+2.32%).
• Dividend yield of 1.32% supports investor confidence.
• PEG ratio below 1 indicates attractive growth valuation.

🏭 Industry

• Industry PE at 30.1 suggests IndiaMART trades at a discount.
• B2B e-commerce sector continues to expand with digital adoption.
• Peers face higher competition, but IndiaMART benefits from strong brand positioning.

🔎 Conclusion

IndiaMART remains a fundamentally strong company with high ROE, ROCE, and negligible debt.

Despite short-term profit decline, its scalable business model and attractive PEG ratio support long-term growth.

Accumulation near ₹1,850–₹2,050 is recommended for investors seeking exposure to India’s expanding B2B e-commerce sector.