Motilal Oswal is bullish on IndiaMART recommended buy rating on the stock with a target price of Rs 3550 in its research report dated August 19, 2020.
Motilal Oswal 's research report on IndiaMART
IndiaMART is India's largest B2B Online Classifieds marketplace, with >70% market share. The platform has more than 6m supplier listings for 68m products across 100k+ categories from 1000+ cities. A strong network effect, resilience to supplier ROI, diversified exposure, and robust SEO (Search Engine Optimization) strength are th e platform's key differentiation factors.Monetization happens through priority listings and subscription packages. Buyers' leads are made visible to suppliers. The channelization of these leads is based on the package the supplier has opted for.
Outlook
Our DCF-based target price of INR3,550 is arrived with an assumption of 11% WACC and 5% terminal growth rate. TP implies upside of 19%. Initiate with Buy. Risk factors include higher mortality in supplier base and potential entry of a cash rich global player.
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