Expensive valuations of IndiaMART IPO may disappoint investors

While long-term opportunity appears robust, high valuations mean little near term gains: Analysts

Investors looking for short- to medium-term returns may be in for a disappointment if recommendations of broking houses on the initial public offering (IPO) of IndiaMART InterMESH (IndiaMART) are anything to go by.

Valuations for the Rs 472-crore IPO that opened on Monday are at 140x its trailing 12-month net profit.

Incorporated on September 13, 1999, IndiaMART is an online business-to-business (B2B) service provider, with paid supplier base of little less than 130,000 and 82.7 million registered buyers as of March 2019. The company enables discovery of products and suppliers across 50 industries. According to a KPMG report, it has