Mehabe score: 4 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
IndiaMART, the first and largest B2B digital marketplace in the country, today stands out as a game-changer on the B2B landscape. It focuses on integrating the Small and Medium Businesses (SMEs) into the new paradigm with speed and ease, we are constantly pushing the frontiers of innovation to make the online marketplace more accessible, visible and engaging to them.
Main Points
Pan India presence
The company has been diversifying its presence and now the Metro cities accounts for only 33% of buyers, tier-2 cities accounts for 26% & rest of India accounts for 41%. # The diversified presence helps to minimize the impact of region-specific risks on its business.
It has a nationwide coverage with 85 office branches and a sales & service staff of ~4,000 employees.Site:INDIAMARTMain Symbol:INDIAMART
Stock trades at 7042.0, below its 50dma 7319.06. However it is trading above its 200dma 6705.52. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 7319.06.
The 52 week high is at 9951.95 and the 52week low is at 2217.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 34.58% CAGR over last 5 years
Weakness
– Stock is trading at 13.28 times its book value
-Promoter holding has decreased over last quarter: -2.13%
Competition
– The industry trades at a mean P/E of 203.8x. Info Edg.(India) trades at the industry’s max P/E of 489.96x. INDIAMART trades at a P/E of 76.5x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. INDIAMART has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 0.8%. The max 1- month return was given by Info Edg.(India): a return of 7.23 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 182.0 cr compared to Rs 153.0 cr for period ended Jun 2020, a rise of 19.0%
Operating Profits reported at Rs 87.0 cr for period ended Jun 2021 vis-vis 73.0 for period ended Jun 2020 .
Operating Margins expanded 9.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 28.93 compared to Rs 18.34 for previous quarter ended Mar 2021 and Rs 25.62 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 698.0 cr for period ended TTM vis-vis sales of Rs 670.0 cr for the period ended Mar 2021, a growth of 4.0%. The 3 year sales cagr stood at 11.2%.
Net Profit reported at Rs 294.0 cr for period ended TTM vis-vis sales of Rs 280.0 cr for the period ended Mar 2021, rising 4.8%.
Company recorded a healthy Net Profit CAGR of 145.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 322.0 cr for period ended Mar 2021 vis-vis Rs 261.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 30.0% compared to 0% over the last 3 Years. – The stock has given a return of 212% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 5% vis-vis a compounded sales growth of 18% over the last 3 Years. – The compounded profit growth on a TTM basis is 90% vis-vis a compounded profit growth of 72% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 26.68% vis-vis 27.53% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 18.64% vis-vis 17.94% for Mar 2021
Conclusion
– is almost debt free.
– has delivered good profit growth of 34.58% CAGR over last 5 years – Stock is trading at 13.28 times its book value
-Promoter holding has decreased over last quarter: -2.13%
