In Tuesday’s session, the share price of a leading online matrimony company moved up by 13.8 percent to hit a new 52-week high at Rs. 848 on BSE, after the company’s Board scheduled a meeting to consider the proposal for share buyback.
With a market cap of Rs. 1,812.2 crores, at 10:47 a.m., the shares of Matrimony.com Limited were trading in the green at Rs. 810, up by 8.7 percent, compared to its previous closing price of Rs. 745.05.
What’s the news:
Matrimony.com Limited informed the stock exchanges that a meeting of the company’s Board will be held on 5th September 2024, to consider and approve the proposal for share buyback of the fully paid-up equity shares of the company.
A share buyback (or stock buyback) is when a company purchases its own outstanding shares from the stock market.
One of the reasons companies do this is to reduce the number of shares available on the market, which can increase the value of the remaining shares.
Buybacks can also be a signal to investors that the company’s management believes the shares are undervalued.
Also Read: Stock jumps 13% after company’s board to consider share buyback
Financials:
Financially, the company experienced significant growth in its revenue from operations, showing a quarter-on-quarter rise of 1.7 percent from Rs. 119 crores in Q4 FY23-24 to Rs. 121 crores in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 12 crores to Rs. 14 crores, indicating a growth of 16.7 percent QoQ
Matrimony.com has the highest market share in pan-India with nearly 60 percent and is the leading online matchmaking company in the country.
On the business front, in FY23-24, the company’s matchmaking revenues grew by 5.9 percent to Rs. 472 crores, adding more than a million paid subscriptions, which is a growth of 8 percent.
Stock Performance
The stock has delivered positive returns of nearly 30 percent in one year, and around 54 percent returns in the last six months. So far in 2024, the shares of Matrimony.com have given about 41 percent of positive returns. About the company:
Matrimony.com Limited offers online matchmaking services on the internet and mobile platforms, and delivers matchmaking services to users in India and the Indian diaspora through websites, mobile sites and mobile apps complemented by a wide on-the-ground network in India.
The company has expanded into marriage services such as Mandap & Wedding Bazaar, a listing website for matrimony-related directory services including listings for wedding-related services such as wedding planners, venues, cards and caterers.
Written by Shivani Singh
Also Read: Auto ancillary stock jumps after company to set up an EV plant worth ₹ 57.5 Cr in Jamshedpur
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
