Buy IndiaMart InterMesh: target of Rs 1900: ICICI Securities

What happened

ICICI Securities maintained a BUY rating on IndiaMart InterMesh but cut its target price to Rs 1,900 from Rs 2,300. In Q2FY27, revenue rose 9.6% year over year while paying subscribers kept shrinking, and EBITDA grew 22.7%.

Confirmed

Global impact / market context

A lower target price means the broker expects less upside, because it reduced the multiple it pays for each rupee of earnings from 15 times to 12 times. For a beginner, that multiple shows how much investors will pay for future profit.

Analyst inference

The report links weaker growth and expected higher interest rates to the lower valuation. Higher rates make future profits worth less today, while fewer paying suppliers and fewer business enquiries point to slower additions of subscription revenue.

Analyst inference

What to watch

1. Watch whether paying subscribers keep shrinking and whether elevated churn among silver suppliers, meaning cheaper-tier customers leaving, eases in coming quarters. Confirmed
2. Track whether holding back customer acquisition spending supports EBITDA growth but limits future revenue gains, since new paying suppliers drive subscription income. Analyst inference
3. Watch the authenticated-enquiry changes: fewer unique business enquiries could reduce engagement, while BUSY billing growth recovering to 20–30% from Q3FY27 would support revenue. Analyst inference

Evidence

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