The upgrade is based on expectations of a new demand cycle, starting with improved platform traffic and business enquiries, followed by growth in subscriber additions and collections. While the broker raised FY26/FY27 earnings estimates by 9-10%, it also lowered profitability expectations.
The valuation multiple was increased from 22x to 35x, citing improved growth prospects. Management's steps to address structural challenges -- like platform upgrades, insourcing sales, and branding investments -- were also noted.
IndiaMART has reduced supplier enquiries per buyer to lower competition and improve satisfaction. The brokerage expects subscriber additions to recover by Q2/Q3, driving collection growth.
IndiaMART is India's largest online B2B marketplace for business products and services. It makes easier to do business by connecting buyers and sellers across product categories and geographies in India through business enablement solutions.
The company's consolidated net profit jumped 81.3% to Rs 180.60 crore on 12.8% increase in revenue from operations to Rs 355.10 crore in Q4 FY25 over Q4 FY24.
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