INDIAMART - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

📊 Core Financials Analysis

Profitability

ROE of 26.9% and ROCE of 34.2% are excellent — strong capital efficiency.

EPS of ₹98.3 and quarterly PAT of ₹154 Cr. (despite a dip from ₹181 Cr.) reflect robust earnings.

Debt-to-equity ratio of 0.02 — virtually debt-free, enhancing financial stability.

Cash Flow & Dividend

Likely strong operating cash flows due to asset-light digital model.

Dividend yield of 1.16% adds modest income potential.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 26.4 Fairly valued vs. industry PE — not overpriced

P/B Ratio ~7.11 High, but justified by strong ROE and digital moat

PEG Ratio 1.25 Slightly elevated — growth priced in but not excessive

Intrinsic Value Likely close to current price — fair valuation with upside potential

🏢 Business Model & Competitive Advantage

Sector: B2B e-commerce — IndiaMART is the leading online marketplace for business products and services.

Moat

Network effect, brand leadership, and recurring subscription revenue.

Asset-light model with high scalability and low capex needs.

Risks

Competitive pressure from newer platforms and aggregators.

Slight decline in quarterly PAT — worth monitoring.

Ownership Trends

FII holding increased (+0.26%) — positive sentiment.

DII holding dipped (–0.20%) — mildly cautious.

📉 Technical & Sentiment Indicators

RSI at 51.7 — neutral zone.

MACD positive and price above both 50-DMA and 200-DMA — bullish momentum.

Volume above average — healthy investor interest.

🎯 Entry Zone & Long-Term Guidance

Suggested Entry Zone: ₹2,500–₹2,550 range (near DMA support and fair valuation)

Long-Term View

Strong candidate for long-term holding in the digital and tech-enabled space.

Ideal for growth investors seeking exposure to India’s B2B digitization.

Hold for 3–5 years with periodic review of user growth, monetization, and competitive landscape.

Would you like a peer comparison with JustDial or other digital platforms to assess relative positioning?

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