Axis Securities Cuts IndiaMART Target Price Analyzed

IndiaMART Intermesh, a company that helps businesses connect, has seen a change in what analysts think its stock is worth. Axis Securities has lowered its target price from ₹2,800 to ₹2,530 per share. This change reflects some challenges the company is facing right now, even though its sales are still growing.

Key Points

• Analysts cut IndiaMART’s target price to ₹2,530, reflecting near-term issues.
• Sales are still increasing, but profits are struggling due to higher marketing costs.
• High marketing spending and customer churn are impacting profitability.
• AI investments haven’t yet brought in a significant amount of revenue.
• IndiaMART is expanding its network, but faces retention challenges.
• The company anticipates stable margins around 30-33% in the medium term.

IndiaMART is trying to get more businesses to use its platform. However, the company is spending a lot of money on advertising to attract customers. This has made it harder to make a profit.

Some customers are leaving the platform, especially those who pay a smaller monthly fee. IndiaMART is working on this problem, but it will take time.

The company is also investing in new technologies, like artificial intelligence, to make its platform better. But these investments aren’t generating much money yet.

IndiaMART is growing its network by adding more suppliers. A new pricing change for its Silver plan could temporarily slow down customer growth.

Despite these challenges, analysts are still optimistic about the overall trend of businesses moving online. They believe IndiaMART is well-positioned for long-term growth.

IndiaMART’s near-term outlook is facing headwinds due to ongoing investment and customer retention efforts.