INDIAMART - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of IndiaMART InterMESH Ltd (INDIAMART), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and incorporated recent analyst sentiment and performance trends as of September 2025.

📊 Fundamental Analysis of IndiaMART InterMESH Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹166 Cr vs ₹231 Cr — sequential decline, but YoY growth of 33.9% is strong.

EPS: ₹108 — robust earnings base.

ROE: 30.0%, ROCE: 37.7% — excellent capital efficiency, well above industry norms.

Leverage & Liquidity

Debt-to-equity: 0.01 — virtually debt-free, highly resilient.

Dividend Yield: 1.19% — modest, with consistent payouts.

Cash Flow & Stability

Strong operating cash flows and high margin business model.

Institutional interest remains steady despite slight DII reduction.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 23.4 Undervalued vs industry PE of 29.0

P/B Ratio ~6.7 High, but justified by ROE and brand strength

PEG Ratio 0.93 Attractive — growth justifies valuation

Intrinsic Value ~₹2,600–₹2,700 Slight upside from current price

🛒 Business Model & Competitive Edge

Segment Focus: B2B e-commerce aggregator — connecting buyers and suppliers across India.

Moat: First-mover advantage, strong brand, and scalable tech platform.

Growth Drivers

Increasing digitization of SMEs and MSMEs.

Expansion into value-added services and subscription models.

High ROE (30%) vs industry average of 6.5%

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📈 Technical & Entry Guidance

Current Price: ₹2,525

DMA 50/200: ₹2,562 / ₹2,463 — trading near support.

RSI: 41.0 — mildly oversold.

MACD: -3.74 — bearish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹2,450–₹2,500 — near DMA 200 support.

Stop Loss: ₹2,350

Target: ₹2,950–₹3,100 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, tech moat, and scalable model justify long-term holding.

Buy on dips: Preferably near ₹2,500 zone.

Growth Triggers: SME digitization, subscription revenue, and platform expansion.

⭐ Fundamental Rating

4.4

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