IndiaMART InterMESH shares took a hit, dropping nearly 10 per cent to ₹2,065.40 on the NSE after the release of its Q3 results. The company reported a consolidated net profit of ₹121 crore for the quarter ended December 2024, a 48 per cent increase from the previous year’s ₹81.9 crore net profit.
Despite the rise in net profit, IndiaMART InterMESH saw a decline in paid subscribers, with a net reduction of 3,715. This drop in the subscriber base led brokerages to downgrade the stock.
Nomura downgraded the stock to Reduce from Neutral, with a reduced target price of ₹1,900 from ₹3,150. Similarly, Nuvama Institutional Equities maintained a Reduce rating on the stock with a revised target price of ₹1,970, down from ₹2,500. They noted that there had not been any significant improvement in subscriber retention despite the company’s efforts to enhance the quality of subscribers and introduce new features on the platform.
ICICI Securities analysts also downgraded the stock to reduce with a lower target price of ₹2,000 from ₹3,000. They indicated that it may take 2-3 quarters to see a meaningful recovery in demand, and highlighted the risks of subscriber addition, churn reduction, and ARPU growth not meeting expectations.
On the other hand, JM Financial remained optimistic about the stock, assigning a Buy rating with a target price of ₹2,450. They believe that there is still potential for collections growth and an increase in paid subscriptions in the next few quarters.
Following the news, the stock rebounded slightly but still closed 6.96 per cent lower on the NSE at ₹2,135.10 and 6.44 per cent lower on the BSE at ₹2,145.75. Despite the setback, some brokerages see potential for recovery in the future.
