IndiaMART InterMESH hits fresh record high, surges 12% in a weak market

The stock hit a new high of Rs 2,143, appreciating 120 per cent against its issue price of Rs 973 per share.

Shares of IndiaMART InterMESH were trading higher for the fifth straight day, up 12 per cent at Rs 2,143 on the BSE, in an otherwise weak market on expectations of strong September quarter earnings. It was quoting at its highest level since its listing on July 4, 2019.

In the past two months, the stock of India's largest online business-to-business marketplace has zoomed 83 per cent, as compared to a per cent decline in the S&P BSE Sensex. The stock now trades at more than double the value of its issue price of Rs 973 per share.

The online B2B company reported a consolidated net profit of Rs 32 crore during the first quarter (April-June) of the financial year 2019-20 (Q1FY20), as against a net loss of Rs 56 crore during same quarter of the last fiscal. Consolidated revenue grew by 30 per cent on year-on-year (YoY) basis to Rs 147 crore over the previous year quarter. Furthermore, earnings before interest, tax, depreciation and amortisation (Ebitda) margin, too, more than doubled to 25 per cent from 11 per cent, reported in the year-ago quarter.

On September 3, 2019, the company had entered into an agreement to make an investment in Vyapar, a mobile-based business accounting software for small businesses, which lets them use the app or desktop version (of the same) for billing Goods and Services Tax (GST) invoices, managing stock inventory and accounting solutions.

At 10:35 am, IndiaMART InterMESH was up 11 per cent at Rs 2,128 on the BSE. In comparison, the S&P BSE Sensex was unchanged at 37,532 points. The trading volumes on the counter nearly doubled with a combined 90,180 equity shares changing hands on the NSE and BSE.