Friends,
Recently I've been following an interesting business called #IndiaMart (India's very own Alibaba ?)
Attempting a small thread 🧵explaining the company, business model and growth prospects in future.
Hope it help. Happy investing!
Recently I've been following an interesting business called #IndiaMart (India's very own Alibaba ?)
Attempting a small thread 🧵explaining the company, business model and growth prospects in future.
Hope it help. Happy investing!
IndiaMART is India’s largest online B2B marketplace, connecting buyers with suppliers with over 60% market share.
Founded in 1999 by Dinesh Chandra Agarwal, when he decided to leave his high paying job in US & return to India to start his venture with co founder Brijesh Agarwal
Founded in 1999 by Dinesh Chandra Agarwal, when he decided to leave his high paying job in US & return to India to start his venture with co founder Brijesh Agarwal
Company is headquartered in Noida and currently employs about 2700 (as of Mar'21) people across 85 branches
Company generated a net profit of Rs.280 Crore in Financial year 2020-21
Company has been showing excellent sales and profit growth in recent years. Got listed in 2019
Company generated a net profit of Rs.280 Crore in Financial year 2020-21
Company has been showing excellent sales and profit growth in recent years. Got listed in 2019
The company is expected to grow with a rate of 25% in next few years due to robust business model and no serious competition in B2B business
Company has unique business model where sellers take subscription to list their business on Indiamart.com on advance pay model
Company has unique business model where sellers take subscription to list their business on Indiamart.com on advance pay model
IndiaMart have a solid product listing with asset light business model
Recently they have been using AI and machine learning to develop cognitive business models and behavioral data algorithms
This helps them connect a specific set of buyers with similar sellers on their portal
Recently they have been using AI and machine learning to develop cognitive business models and behavioral data algorithms
This helps them connect a specific set of buyers with similar sellers on their portal
76% of their visitors on Indiamart.com are from a mobile phone and they enjoy a very good rating of 4.7 on Google play store.
Apure asset light & cash positive business model
55% of their buyers are repeat buyers which means they have a decent customer retention rate
Apure asset light & cash positive business model
55% of their buyers are repeat buyers which means they have a decent customer retention rate
During the pandemic, company focused really strong on digitization and operational efficiency.
All their employees are currently working from home.
Recently company is also acquiring stake on smaller companies like Vyapar.
Company has reported decent no. in their Q4 FY 21.
All their employees are currently working from home.
Recently company is also acquiring stake on smaller companies like Vyapar.
Company has reported decent no. in their Q4 FY 21.
A matter of concern is promoters consistently reducing their stake in the company.
As stock has rallied big time recently, could be promoters thinking to liquidate some of their holding at such absurd valuations ? Not sure 🤨
There is no pledging issue with the company.
As stock has rallied big time recently, could be promoters thinking to liquidate some of their holding at such absurd valuations ? Not sure 🤨
There is no pledging issue with the company.
Valuation:
From valuation prospective the stock is quite expensive even now. I think one can keep it in the radar and invest at opportune time.
I really doubt if this will go below 2000 in new future. I think a price below 7000 could be good starting point to accumulate.
From valuation prospective the stock is quite expensive even now. I think one can keep it in the radar and invest at opportune time.
I really doubt if this will go below 2000 in new future. I think a price below 7000 could be good starting point to accumulate.
Summary: I see this as a great business with high growth prospects in the long run. #WillGrowWithIndia
One must keep this under the radar & invest after discussing with a financial advisor.
Sources:
#IndiaMart Annual report 2020
Screener.in
Marketsmojo.com
One must keep this under the radar & invest after discussing with a financial advisor.
Sources:
#IndiaMart Annual report 2020
Screener.in
Marketsmojo.com
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