IndiaMART share price climbs after Jefferies initiate ‘Buy

The American multinational independent investment bank, Jefferies Group LLC, suggested investors to ‘Buy’ stocks of IndiaMART with a target price of Rs 2,500 per share. Post this development, the share price of IndiaMART InterMESH Ltd jumped on December 23, 2019 and gained the most after December 12, 2019, rising as much as 5.64 per cent to Rs 2,097 apiece.

The research firm-Jefferies said that the Indian e-commerce company, IndiaMART has strong moats to defend it against competition and is the dominant B2B classified platform in India. Further, the company also feels that the margin of IndiaMART should expand to 28 per cent by FY22 from 16 per cent in FY19.

Talking about IndiaMART, the global brokerage firm says, “Expect 20 per cent revenue CAGR over FY20-22 despite macro headwinds related to economic slowdown and also free cash flow positive helped by upfront collections and low capex.”

Nevertheless, the company’s revenue grew 31 per cent annually in the past 4 years and turned profitable last year. Analysts expect revenue to grow 50 per cent annually in the next 3 fiscal years.

At 12.26 pm IST, the stock of IndiaMART was quoting at Rs 2,074.60, up by 4.51 per cent or Rs 89.50 per share, on BSE.