IndiaMart InterMESH Share Price Hits Eight-Month High After Nuvama Upgrade

Shares of IndiaMart InterMESH rose over 6% on Wednesday hitting a eight-month high after Nuvama upgraded it to 'buy' from 'reduce', sharply raising its target price from Rs 2,100 to Rs 3,800. This is the highest price target so far among the analysts tracked by Bloomberg.

Nuvama believes the company is well-positioned for a re-rating as growth re-accelerates and key performance indicators continue to improve. The brokerage also added that the business is entering a new upcycle, underpinned by improving subscriber metrics, strategic platform investments, and a recovering demand environment.

After two years of elevated churn in its silver subscription tier and declining user engagement, IndiaMART has initiated several corrective measures. These include upgrades to its platform, insourcing parts of its sales force, and increased investments in branding and marketing.

These efforts have started to yield results, with unique business enquiries per paid supplier rising from a low of 106 in first quarter of financial year 2024 to 125 in the fourth quarter of the previous fiscal, closing in on the long-term average of 130.

Nuvama has increased its earnings estimates by 9–10% for fiscal 2026–2027, driven by stronger revenue growth. Revenue is forecast to grow at an 18% CAGR over financial year 2025–2028E, supported by an 8.2% CAGR in subscriber additions and 9.7% CAGR in ARPU.

While Ebitda margins may moderate, Nuvama believes this will not negatively impact investor sentiment, as higher margins have historically been viewed as temporary.

Shares of IndiaMart InterMesh rose as much as 6.13% to Rs 2,647.80 apiece, the highest level since Oct. 21. It pared gains to trade 5.35% higher at Rs 2,628.30 apiece, as of 9:27 a.m. This compares to a 0.49% advance in the NSE Nifty 50 Index.

It has fallen 2.77% in the last 12 months and risen 16.89% year-to-date. Total traded volume so far in the day stood at 1.2 times its 30-day average. The relative strength index was at 82 indicating it was overbought.

Out of 21 analysts tracking the company, eight maintain a 'buy' rating, five recommend a 'hold' and eight suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 3.8%.