⚠ 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: 4.0
| Stock Code | INDIAMART | Market Cap | 12,615 Cr. | Current Price | 2,098 ₹ | High / Low | 2,799 ₹ |
| Stock P/E | 18.4 | Book Value | 373 ₹ | Dividend Yield | 1.43 % | ROCE | 37.7 % |
| ROE | 30.0 % | Face Value | 10.0 ₹ | DMA 50 | 2,182 ₹ | DMA 200 | 2,310 ₹ |
| Chg in FII Hold | -3.25 % | Chg in DII Hold | 3.42 % | PAT Qtr | 206 Cr. | PAT Prev Qtr | 83.5 Cr. |
| RSI | 42.4 | MACD | -28.9 | Volume | 1,04,405 | Avg Vol 1Wk | 2,20,186 |
| Low price | 1,850 ₹ | High price | 2,799 ₹ | PEG Ratio | 0.73 | Debt to equity | 0.01 |
| 52w Index | 26.1 % | Qtr Profit Var | 65.0 % | EPS | 114 ₹ | Industry PE | 20.8 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from ₹83.5 Cr. to ₹206 Cr. (QoQ), showing strong earnings growth.
- Margins: ROE at 30.0% and ROCE at 37.7% are excellent, reflecting strong profitability and capital efficiency.
- Debt: Debt-to-equity ratio of 0.01 indicates a nearly debt-free balance sheet.
- Cash Flow: EPS of ₹114 is strong, supporting shareholder value.
💹 Valuation Metrics
- P/E Ratio: 18.4 vs Industry PE of 20.8 → slightly undervalued compared to peers.
- P/B Ratio: Price ₹2,098 vs Book Value ₹373 → trading at a premium, reflecting investor confidence.
- PEG Ratio: 0.73 → suggests fair valuation relative to growth.
- Intrinsic Value: Strong fundamentals and reasonable valuation make Indiamart attractive for long-term investors.
🏢 Business Model & Competitive Advantage
- Indiamart operates as India’s largest online B2B marketplace, connecting buyers and suppliers.
- Competitive advantage lies in strong brand recognition, network effects, and digital-first business model.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹1,950–2,100 range looks attractive given undervaluation and technical support levels.
- Long-Term Holding: Strong candidate for long-term portfolios due to robust ROE/ROCE, debt-free status, and scalable business model.
✅ Positive
- Debt-free balance sheet.
- Excellent ROE (30.0%) and ROCE (37.7%).
- Strong EPS (₹114) and PAT growth (65%).
- DII holdings increased (+3.42%), showing domestic institutional confidence.
⚠️ Limitation
- Stock trading below DMA 50 & DMA 200, indicating bearish technical trend.
- FII holdings decreased (-3.25%).
- High P/B ratio shows premium pricing.
📉 Company Negative News
- FII outflows (-3.25%) show reduced foreign investor confidence.
- Stock corrected from high of ₹2,799 to current ₹2,098.
📈 Company Positive News
- Quarterly PAT growth of 65% shows strong momentum.
- DII holdings increased significantly (+3.42%).
- PEG ratio (0.73) indicates fair valuation relative to growth.
🏦 Industry
- Industry PE at 20.8 highlights sector trades at slightly higher multiples than Indiamart.
- B2B e-commerce sector growth supported by digital adoption and SME participation.
🔎 Conclusion
- Indiamart is fundamentally strong with excellent ROE/ROCE, debt-free status, and strong earnings growth.
- Entry around ₹1,950–2,100 is favorable for long-term investors.
- Strong long-term holding potential given scalable business model and undervaluation relative to peers.