INDIAMART - Investment Analysis

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

🛒 Investment Analysis: IndiaMART InterMESH Ltd. (INDIAMART)

Investment Rating: 4.4

🧮 Core Strengths

ROE (26.9%) and ROCE (34.2%) are outstanding, suggesting highly effective capital use and solid profitability — a clear sign of a quality compounder.

EPS of ₹98.3 highlights a strong earnings profile with positive quarter-on-quarter performance.

Debt-to-equity ratio of 0.02 reflects a virtually debt-free business — great for long-term resilience.

Dividend Yield of 1.16% adds a modest income layer to the growth story.

💸 Valuation Perspective

P/E of 26.4 matches the industry average, making valuation appear fair for a profitable tech-enabled B2B platform.

PEG Ratio of 1.25 suggests that the stock is slightly above fair value — manageable if growth sustains.

Price-to-book ratio ~7.1 (₹2,589/₹364) indicates premium pricing, but justified by high ROE and scalability.

📈 Trend & Technical Signals

MACD (+18.4) and RSI (51.7) show moderate bullish momentum — technicals turning constructive.

Trading above both 50-DMA (₹2,512) and 200-DMA (₹2,416) implies stable medium- and long-term positioning.

FII holdings increasing and DII marginally decreasing — suggests mixed but acceptable institutional outlook.

🎯 Ideal Entry Price Zone: ₹2,500 – ₹2,570 This window offers value entry slightly below current levels, aligning with moving average support and potential for breakout.

🧭 Already Holding? Strategic Playbook

✅ Hold Strategy

Time Horizon: 3–5 years — built for durable compounding

Continue holding if

ROCE stays above 30%

EPS climbs above ₹110 in the next 2–3 quarters

PEG drops below 1.0 with sustained revenue growth

🚪 Exit Strategy

Partial exit near ₹3,100–₹3,200 to lock profits close to previous highs

Full exit if

ROE dips below 20% for 2+ quarters

PEG remains >1.5 while growth slows

RSI crosses 70 and volume spikes — may signal exhaustion in rally

IndiaMART blends platform scalability with financial strength — a compelling story for investors seeking high-margin, tech-led growth. Curious how this stacks up against other tech or SaaS-driven firms like Info Edge or Just Dial? I can craft a side-by-side to refine your strategy 🧠📊

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