IndiaMart continues to soar, hits new high; stock zooms 63% in 2 months

Topics IndiaMART | Buzzing stocks | Markets

Shares of IndiaMart InterMesh were listed on the bourses in July 2019.
Shares of IndiaMart InterMesh hit a fresh record high of Rs 3,883 apiece on the BSE on Tuesday, up over 10 per cent against Monday's close of Rs 3,519.50. With today's gain, the stock of the company has rallied 62.6 per cent in the past two months as compared to over 11 per cent gain in the benchmark S&P BSE Sensex, ACE Equity data show.

At 10:24 AM, the stock was trading nearly 8 per cent higher at Rs 3,800 on the BSE as compared to a 0.25 per cent rise in the benchmark S&P BSE Sensex.

Last week, the domestic brokerage firm Motilal Oswal Financial Services (MOFSL) had initiated the coverage on IndiaMart InterMesh with a "BUY" rating.

"In the past three years, the scalability of paid suppliers and request for quotation (RFQ) relevancy have led to a 26 per cent revenue compound annual growth rate (CAGR). Negligible spends on advertising over FY18–20 have led to turnaround in margins to 23 per cent in FY20 from -19 per cent in FY17. IndiaMART has shown tremendous resilience on the margin front. Despite a 50 per cent drop in collections for 1QFY21, the company has been able to increase margins on significant rationalisation in the operating cost," MOFSL said in its report. 

Shares of IndiaMart InterMesh were listed on the bourses in July 2019. The initial public offering (IPO) of the company had received a strong response with bids for 97 million shares. The IPO was subscribed 36 times. The qualified institutional buyers (QIBs) category was subscribed 31 times. The non-institutional investor’s category was subscribed 62 times. The retail individual investors (RIIs) category was subscribed 14 times.

For the quarter ended June 2020, IndiaMart had posted a 128.7 per cent jump in its consolidated net profit at Rs 74.1 crore against Rs 32.4 crore in the year-ago period. Total income came in at Rs 186.8 crore, up 15.59 per cent against Rs 161.6 crore in June 2019 quarter. Revenue from operations was Rs 153.1 crore, up 4 per cent year-on-year (YoY).  



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