Buy IndiaMART InterMESH, target price Rs 4920: JM Financial

JM Financial has buy call on IndiaMART InterMESH with a target price of Rs 4920. The current market price of IndiaMART InterMESH NSE -1.12 % is Rs 4345. Time period given by analyst is one year when IndiaMART NSE -1.12 % InterMESH Ltd. price can reach deQned target.

IndiaMART InterMESH Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 13398.16 Crore) operating in Services sector.

IndiaMART InterMESH Ltd. key Products/Revenue Segments include Income From Information Services for the year ending 31-Mar-2021.

For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 225.58 Crore, down -2.30 % from last quarter Total Income of Rs 230.90 Crore and up 6.91 % from last year same quarter Total Income of Rs 211.00 Crore. Company reported net proQt after tax of Rs 53.66 Crore in latest quarter.

Investment Rationale

The brokerage believes IndiaMART remains well-poised to report strong Consol. Revenue/EBITDA/EPS CAGR of 18%/26%/33% over FY23-25E due to robust collections trends and operating leverage in its core business. It re- iterates ‘BUY’ rating and roll-forward DCF (FCFF CAGR of 13.3% over the next 15 years, 5% terminal growth rate and 12% WACC) to set a Sep’23 TP of INR 4,920 (vs. INR 4,800 earlier). Its TP implies Sep’23 PER of 42x.

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