IndiaMART, India’s biggest online B2B marketplace, saw its stock rise 5% after a major brokerage gave it a thumbs up. The firm upgraded its rating to ‘Buy’ and raised the target price to ₹3,800. That’s a strong sign that the market expects a solid comeback.
So what’s behind this renewed interest?
New Demand Cycle in Sight
According to the brokerage, a fresh demand cycle has kicked off. First, there’s a visible boost in platform traffic and buyer enquiries. This is expected to lead to more paid subscriber additions and stronger collections in the coming quarters.
In fact, the brokerage has raised its earnings forecast for IndiaMART by 9-10% for FY26 and FY27. That’s a big vote of confidence.
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Structural Fixes Pay Off
IndiaMART isn’t just riding on market luck. Management has been busy fixing long-standing issues. They’ve upgraded the platform, insourced their sales team, and pumped money into brand-building.
The goal? Improve buyer satisfaction and reduce noise. To do this, they’ve actually cut down the number of supplier enquiries per buyer. Fewer sellers per query = less spam, more quality.
It’s working.
Valuation Gets a Boost
The brokerage didn’t just upgrade the stock—they changed how they value it. The valuation multiple was raised from 22x to 35x. That means the company is now seen as a stronger growth story than before.
Subscriber additions, which had slowed down in recent quarters, are expected to pick up again by Q2 or Q3. That would mean a rise in collections, which directly impacts revenue.
IndiaMART is more than just a listing site. It connects businesses across India, making B2B trade smoother and faster. It’s a key piece in India’s digital commerce growth story.
And now, it’s finally getting the attention it deserves.
Disclaimer:
This article is for informational purposes only and is not financial advice. Please consult a certified advisor before making investment decisions.
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