India’s Internet & Catalogue Retail sector is experiencing robust growth, driven by digital adoption and expanding online shopper bases. From FY23 to FY26, the overall retail market is projected to grow at 10% CAGR, reaching $1.2 trillion by FY26. E-retail, a key segment, is expected to hit $120–$140 billion by FY26, fueled by increasing penetration in smaller cities and diverse demographics.
With a market capitalization of Rs 15,870.40 crore, the shares of IndiaMART InterMESH Ltd were trading at Rs 2,642.00 per share, increasing around 5.93 percent as compared to the previous closing of Rs 2,494.05 apiece.
Brokerage Recommendation
Nuvama Institutional Equities, one of the well-known brokerages in India, upgraded to a ‘Buy’ rating from ‘reduce’, on this retail stock with a target price of Rs 3,800 apiece, indicating a potential upside of 44 percent from Wednesday’s price of Rs 2,642.00 per share.
The brokerage expects management’s focus on platform upgrades and increased marketing to boost unique business enquiries and net new subscriber additions. It raised FY26E/27E earnings estimates by ~9–10% on stronger revenue growth, though it trimmed profitability forecasts due to elevated spending.
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Further, IndiaMART has seen persistent churn in its silver subscriber base over the past two years. This led to a drop in unique enquiries per paid supplier, falling to 106 in Q1FY24 below the pre-COVID average and significantly lower than the 148 seen during FY21–23.
Additionally, the brokerage noted that the company’s management has taken a measured approach, focusing on resolving core issues rather than simply increasing gross additions to counter churn. This strategy is paying off, with steady improvement seen in key metrics, now reaching 125 in Q4FY25.
Looking forward to the company’s financial performance, revenue increased by 13 percent from Rs 315 crore in Q4FY24 to Rs 355 crore in Q4FY25. Further, during the same time frame, net profit increased by 81 percent from Rs 100 crore to Rs 181 crore.
IndiaMART InterMESH Limited is an India-based online business-to-business (B2B) marketplace that connects buyers with suppliers. The channel is focused on providing a platform for small and medium enterprises (SMEs), large enterprises, as well as individuals.
Written by Abhishek Singh
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