INDIAMART - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | INDIAMART | Market Cap | 12,640 Cr. | Current Price | 2,104 ₹ | High / Low | 2,799 ₹ |
| Stock P/E | 24.1 | Book Value | 423 ₹ | Dividend Yield | 1.43 % | ROCE | 28.6 % |
| ROE | 21.8 % | Face Value | 10.0 ₹ | DMA 50 | 2,127 ₹ | DMA 200 | 2,257 ₹ |
| Chg in FII Hold | 0.89 % | Chg in DII Hold | -2.87 % | PAT Qtr | 69.6 Cr. | PAT Prev Qtr | 206 Cr. |
| RSI | 47.8 | MACD | 9.54 | Volume | 65,594 | Avg Vol 1Wk | 75,801 |
| Low price | 1,925 ₹ | High price | 2,799 ₹ | PEG Ratio | 1.00 | Debt to equity | 0.01 |
| 52w Index | 20.4 % | Qtr Profit Var | -69.9 % | EPS | 87.4 ₹ | Industry PE | 26.6 |
Core Financials:
IndiaMART shows strong fundamentals with ROE at 21.8% and ROCE at 28.6%, reflecting high efficiency. EPS is solid at ₹87.4, though quarterly PAT dropped sharply (₹69.6 Cr vs ₹206 Cr, -69.9%), indicating earnings volatility. Debt-to-equity is very low at 0.01, highlighting a strong balance sheet.
Valuation:
Stock P/E of 24.1 is slightly below industry average (26.6), suggesting fair valuation. PEG ratio of 1.00 indicates balanced growth expectations. Price-to-book is ~5.0, moderately expensive but justified by strong fundamentals. Dividend yield of 1.43% provides income support.
Business Model & Health:
IndiaMART operates as a leading B2B e-commerce marketplace, benefiting from digital adoption and SME participation. Competitive advantage lies in its strong brand, wide network, and asset-light model. However, earnings volatility and reduced DII interest limit upside potential.
Entry Zone:
Ideal entry zone: ₹1,950–₹2,050. Current price ₹2,104 is near fair entry. Long-term holding is viable given strong fundamentals, but investors should monitor earnings stability.
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Positive
- Strong ROE (21.8%) and ROCE (28.6%)
- Debt-to-equity very low (0.01)
- EPS robust at ₹87.4
- Dividend yield of 1.43%
- FII holdings increased (+0.89%)
Limitation
- Quarterly PAT contraction (-69.9%)
- DII holdings reduced (-2.87%)
- Price-to-book (~5.0) moderately expensive
- RSI 47.8 indicates mild bearish momentum
Company Negative News
- Sharp decline in quarterly PAT
- Reduced DII confidence (-2.87%)
Company Positive News
- Strong fundamentals with high ROE/ROCE
- FII confidence improved (+0.89%)
- Technical indicators show mild bullish crossover (MACD 9.54)
Industry
E-commerce and B2B marketplace sector trades at industry P/E of 26.6, supported by digital adoption and SME growth. IndiaMART trades near fair value, offering strong fundamentals but facing earnings volatility.
Conclusion
IndiaMART is fundamentally strong with excellent efficiency and low debt. Rating: 3.9. Entry near ₹1,950–₹2,050 is preferable. Long-term holding is justified by strong fundamentals, but investors should monitor earnings volatility. Exit strategy around ₹2,700–₹2,800 if fundamentals stagnate.
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