IndiaMART InterMESH Limited

Consumer Cyclical — Internet Retail · NSE

₹1,630.70+₹1.50 (+0.09%)

DalalBaazaar Score

79 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of IndiaMART InterMESH Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

IndiaMART InterMESH Limited operates an online business-to-business (B2B) marketplace for business products and services in India and internationally.

IndustryInternet Retail

SectorConsumer Cyclical

Annual revenue₹1,569 Cr

How does it make money?

Turns over ₹1,569 Cr a year. Of every ₹100 of sales, about ₹30 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 20.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 20.6% and earnings to grow about 7.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.6%

Est. earnings growth+7.6%

Analysts15

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +59% while net margin moved +5% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+59%

Margin effect+5%

DalalBaazaar Score

79/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.29 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

83/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

19.9x

3Y Median

41.9x

40 monthly readings · mean 39.9x · range 19.7x–66.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 52% below its 3y median of 41.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 71% below the peer median of 69.2x.

vs. its own history

Cheap

41.9x median over 40 months · -52%

vs. sector peers

Cheap

69.2x median of 4 peers · -71%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.0x

PEG

1.07

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 23.9% to 31.1% over 3 years.
Debt is being paid down
Total debt is down 50% over 3 years.
Cash generation is improving
Free cash flow is up 50% over 3 years.
Return on equity is rising
ROE has improved from 13.8% to 19.8%.
Return on capital is rising
ROCE has improved from 14.7% to 20.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 23.9% to 31.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 50% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 52% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 71% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 16.8% CAGR
Latest reported year was 11.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 29%✓ 31.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹687 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 20.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹9,807 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.9x

Fair

Fairly valued against the generic band

P/B Ratio

4.42x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹81.84

Profitable

Profitable on a per-share basis

ROE

23.1%

Strong

Strong capital efficiency

ROCE

20.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.97x

Moderate

Moderate leverage

Revenue Growth (YoY)

11.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.84%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹905 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

15.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

7.2%

Average

Average asset productivity

Operating Margin

33.8%

Good

Healthy core-business profitability

Net Margin

30.6%

Good

Strong bottom-line conversion

Current Ratio

2.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1621.0 / 1690.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹985 Cr	₹1,197 Cr	₹1,388 Cr	₹1,569 Cr	+16.8%
EBITDA	₹235 Cr	₹294 Cr	₹479 Cr	₹489 Cr	+27.6%
EBITDA Margin	23.9%	24.6%	34.5%	31.1%	—
PAT (Net Profit)	₹284 Cr	₹334 Cr	₹551 Cr	₹475 Cr	+18.7%
EPS	₹46.32	₹55.04	₹91.59	₹78.77	+19.4%
ROE	13.8%	19.2%	25.2%	19.8%	—
ROCE	14.7%	19.5%	24.5%	20.0%	—
Total Debt	₹46 Cr	₹41 Cr	₹33 Cr	₹23 Cr	-20.5%
Free Cash Flow	₹459 Cr	₹544 Cr	₹615 Cr	₹687 Cr	+14.4%

🟢 Revenue has grown at 16.8% a year over 3 years.

🟢 EBITDA has grown at 27.6% a year over 3 years.

🟢 EBITDA Margin has risen from 23.9% to 31.1% over 3 years (+7.3 pts).

🟢 PAT (Net Profit) has grown at 18.7% a year over 3 years.

🟢 EPS has grown at 19.4% a year over 3 years.

🟢 ROE has risen from 13.8% to 19.8% over 3 years (+6.0 pts).

🟢 ROCE has risen from 14.7% to 20.0% over 3 years (+5.3 pts).

🟢 Total Debt has shrunk at 20.5% a year over 3 years.

🟢 Free Cash Flow has grown at 14.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,625 Cr

Total Liabilities

₹2,224 Cr

Cash & Equivalents

₹80 Cr

Operating Cash Flow

₹694 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

13.4%

Insider Holding

58.1%

Corporate Actions

Next Earnings

20 Oct 2026

Dividend Rate

₹30

Ex-Dividend Date

19 Jun 2026

Analyst Consensus

Recommendations

10 Buy · 2 Hold · 6 Sell

Target Price (Mean)

₹2,037.33

+24.9% vs CMP

Target Range

₹1,650 – ₹2,540

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

What IndiaMART InterMESH Holders Got Wrong Before The Slide

Simply Wall Street, 15 Oct

Indiamart Share Price near 52-week low | Stock analysis

Univest, 13 Oct

INDIAMART Outlook for the Week

Equitypandit, 09 Oct

IndiaMART profit rises 12.2% in Q1 FY27; board approves finance subsidiary

scanx.trade, 15 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

IndiaMART Intermesh (INDIAMART.NS) Steadies Near ₹1,637 as Focus Shifts to ₹1,555 Support - Leveraged ETF Flow

https://www.siam.in/, 28 Sept

IndiaMart stock crashes 5% after Q1 results; brokerages flag continued subscriber decline despite earnings...

Moneycontrol.com, 22 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑