Buy IndiaMART InterMESH, target price Rs 5500: HDFC Securities

HDFC Securities has buy call on IndiaMART InterMESH with a target price of Rs 5500. The current market price of IndiaMART InterMESH is Rs 4602.8.

IndiaMART InterMESH, incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 14066.17 Crore) operating in Services sector.

IndiaMART InterMESH key Products/Revenue Segments include Income From Information Services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 353.60 Crore, up 23.12 % from last quarter Total Income of Rs 287.20 Crore and up 68.38 % from last year same quarter Total Income of Rs 210.00 Crore. Company has reported net profit after tax of Rs 122.20 Crore in latest quarter.

The company’s top management includes Mr.Dinesh Chandra Agarwal, Mr.Brijesh Kumar Agrawal, Mr.Dhruv Prakash, Mr.Rajesh Sawhney, Mrs.Elizabeth Lucy Chapman, Mr.Vivek Narayan Gour. Company has BSR & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 3 Crore shares outstanding.

Investment Rationale
HDFC Securities maintains its positive stance on the counter, based on growth visibility led by improving cash collections; investments in growth engine; improving margin outlook; and lower churn in top customers.

Promoter/FII Holdings
Promoters held 49.22 per cent stake in the company as of 31-Dec-2022, while FIIs owned 25.38 per cent, DIIs 5.81 per cent.