IndiaMART InterMESH share price: Falls 10%, subscriber drop in Q3 disappoint brokerages

Shares of IndiaMART InterMESH slumped nearly 10 per cent to ₹2,065.40 on the NSE, following the Q3 results. The company recorded consolidated net profit for the quarter ended December 2024 at ₹121 crore, 48 per cent higher from ₹81.9 crore net profit in the corresponding quarter previous year.

However, the company reported a decline in paid subscribers with a net reduction of 3,715. This churn in the subscriber base has driven brokerages to downgrade the stock.

Nomura downgraded the stock to Reduce from Neutral at a slashed target price of ₹1,900 from ₹3,150 earlier. 

Nuvama Institutional Equities said it is yet to see any meaningful sign of improving subscriber retention though the company’s management has undertaken efforts, including focusing on the quality of subscribers, making changes in algorithms and additional features on platform.

The brokerage has retained Reduce rating on the stock at a revised target price of ₹1,970 from ₹2,500 earlier. “Cuts in our estimates were limited as our estimates were already 10 per cent lower than consensus,” it said.

Analysts of ICICI Securities have downgraded the stock to reduce at a slashed target price of ₹2,000 from ₹3,000. However, they believe a meaningful recovery in demand may take at least 2-3 quarters. The upside risks were stronger-than-expected subscriber addition, reduction in churn and ARPU growth outperforming expectations.

“We believe the stock could de-rate given there are no tangible results from the initiatives undertaken with regard to churn management,” it added.

Meanwhile, JM Financial has assigned a Buy rating for the stock at a target price of ₹2,450. Stating that the sequential fall in paid subscription suppliers was a big disappointment, JM Financial believes a recovery in collections growth to the low-teens and mid-single digit growth in paid subscriptions is still possible over the next two-three quarters. 

Rebounding from the loss, the stock closed 6.96 per cent lower on the NSE at ₹2,135.10. On the BSE, the stock depreciated 6.44 per cent to ₹2,145.75.