INDIAMART - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 4.1
| Stock Code | INDIAMART | Market Cap | 13,585 Cr. | Current Price | 2,260 ₹ | High / Low | 2,799 ₹ |
| Stock P/E | 19.8 | Book Value | 373 ₹ | Dividend Yield | 1.33 % | ROCE | 37.7 % |
| ROE | 30.0 % | Face Value | 10.0 ₹ | DMA 50 | 2,246 ₹ | DMA 200 | 2,359 ₹ |
| Chg in FII Hold | -3.25 % | Chg in DII Hold | 3.42 % | PAT Qtr | 206 Cr. | PAT Prev Qtr | 83.5 Cr. |
| RSI | 57.4 | MACD | 2.80 | Volume | 76,922 | Avg Vol 1Wk | 84,999 |
| Low price | 1,850 ₹ | High price | 2,799 ₹ | PEG Ratio | 0.79 | Debt to equity | 0.01 |
| 52w Index | 43.2 % | Qtr Profit Var | 65.0 % | EPS | 114 ₹ | Industry PE | 27.9 |
📊 Indiamart shows strong fundamentals for long-term investment. ROCE at 37.7% and ROE at 30.0% reflect excellent efficiency and profitability. Debt-to-equity at 0.01 highlights a virtually debt-free balance sheet. The PEG ratio of 0.79 suggests undervaluation relative to growth, while P/E of 19.8 is below the industry average of 27.9, offering valuation comfort. Dividend yield at 1.33% provides moderate income support. Current price (2,260 ₹) is near DMA 50 (2,246 ₹) and slightly below DMA 200 (2,359 ₹), showing consolidation. RSI at 57.4 indicates neutral momentum, while quarterly PAT growth of 65% is a strong positive.
💡 Ideal Entry Zone: 2,200 ₹ – 2,260 ₹ (aligned with DMA 50 support and valuation comfort).
📈 Exit / Holding Strategy: If already holding, maintain for 3–5 years given strong ROE/ROCE and low debt. Consider partial profit booking near 2,700–2,800 ₹ resistance. Long-term holding is justified if earnings growth sustains and institutional confidence stabilizes.
Positive
- 📌 ROCE at 37.7% and ROE at 30.0% are excellent.
- 📌 Debt-to-equity ratio of 0.01 shows strong balance sheet stability.
- 📌 PEG ratio of 0.79 indicates undervaluation relative to growth.
- 📌 EPS at 114 ₹ supports strong earnings visibility.
- 📌 Quarterly PAT growth of 65% (83.5 Cr. to 206 Cr.).
Limitation
- ⚠️ FII holdings declined (-3.25%), showing reduced foreign confidence.
- ⚠️ Current price below DMA 200 indicates weak medium-term momentum.
- ⚠️ Dividend yield at 1.33% is modest compared to peers.
Company Negative News
- ❌ Decline in FII holdings (-3.25%).
- ❌ Price consolidation below DMA 200 reflects technical weakness.
Company Positive News
- ✅ Strong quarterly PAT growth (65%).
- ✅ DII holdings increased (+3.42%), showing domestic investor confidence.
- ✅ Debt-free structure strengthens financial stability.
Industry
- 🏭 Industry PE at 27.9 vs stock PE 19.8 highlights valuation comfort.
- 🏭 E-commerce and B2B marketplace sector supported by digital adoption and SME participation.
Conclusion
🔎 Indiamart offers excellent fundamentals with strong ROE/ROCE, debt-free balance sheet, and valuation comfort, making it a good candidate for long-term investment. Accumulation near 2,200–2,260 ₹ is ideal. Hold for 3–5 years with partial profit booking near 2,700–2,800 ₹ resistance, while monitoring institutional investor trends and earnings growth.