MoneyWorks4Me

Check Before You Invest : Indiamart Intermesh Ltd

BSE: 542726 NSE: INDIAMART ISIN: INE933S01016
  |   Sector:  Retail   |   Industry:  e-Commerce

Snapshot

Q.1 Which industry/sub-sector does Indiamart Intermesh Ltd belong to?
Indiamart Intermesh Ltd belongs to the Retail sector, operating specifically within the e-Commerce segment.
Q.2 Is Indiamart Intermesh Ltd a good quality company?
Indiamart Intermesh Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Indiamart Intermesh Ltd undervalued or overvalued?
Indiamart Intermesh Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 21.81 48.82
Price to Book 4.24 7.19
Price to Sales 6.68 11.13
EV to EBITDA 14.01 21.23
Q.4 Is Indiamart Intermesh Ltd a good buy now?
Indiamart Intermesh Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd revenue growth is 13% for FY-2026, which is below its 5-year CAGR of 18.57%, indicating slower growth.

Q.2 Gross Profit margin of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Gross profit margin which is the profit after deduction of direct costs, is 46.6% for FY-2026, which is in line with its 5-year median of 46.6%, indicating stable margins.

Q.3 Operating Profit Margin of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.78% for FY-2026, which is in line with its 5-year median of 33.78% indicating stable margins.

Q.4 Net Profit Margin of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Net Profit Margin is 30.25% for FY-2026, is in line with its 5-year median of 30.25%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 46.6 46.6
Operating Profit Margin (%) 33.78 33.78
Net Profit Margin (%) 30.25 30.25

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Return on Asset is 10.47%, which is in line with its 5-year historical median of 10.47%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Return on capital employed is 28.39% for FY-2026, which is above its 5-year historical median of 24.42%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Return on equity is 21.1% for FY-2026, which is above its 5-year historical median of 17.9%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Cash conversion cycle is -11 days, above its 5-year historical median of -13 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.35 0.33
ROE (%) 21.1 17.9
ROCE (%) 28.39 24.42
Cash Conversion Cycle -11 days -13 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Indiamart Intermesh Ltd?
Indiamart Intermesh Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Indiamart Intermesh Ltd?

Q.1 Promoter shareholding and pledge status of Indiamart Intermesh Ltd?
Promoters hold 49.07% of the Indiamart Intermesh Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Indiamart Intermesh Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Indiamart Intermesh Ltd vs industry peers?
Indiamart Intermesh Ltd revenue CAGR is 18.57%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 13 0
Gross Profit Growth (%) -7.2 13.6
Operating Profit Growth (%) 1.3 12.2
Net Profit Growth (%) -13.8 25.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.35 0.53
ROE (%) 21.1 17.9
ROCE (%) 28.39 20.76
Cash Conversion Cycle (days) -11.09 10

Valuation & price assessment

Q.1 Stock return of Indiamart Intermesh Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -12.97% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -13% -16.9% -29.7%
Q.2 Valuation ratios of Indiamart Intermesh Ltd vs historical?
The current P/E ratio of 21.81 is lower than its historical median of 48.82, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 21.81 48.82 31.46
Price to Book 4.24 7.19 5.00
Price to Sales 6.68 11.13 7.95
EV to EBITDA 14.01 21.23 18.70

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