Shares of IndiaMART dipped as much as 10% to record its fresh 52-week low of INR 2,064.10 during the intraday trading today (January 22) following the company’s announcement of its financial results for the December 2024 quarter (Q3 FY25).

However, the shares pared some losses to trade 7.17% lower at INR 2,129 as of 10:30 AM.

With today’s stock correction, the company’s market capitalisation stood at INR 12,780.84 Cr at the aforementioned time, with 18.29 Lakh shares traded by then.

The stock opened today’s trading session 8.6% lower at INR 2,095.00, inching close to its lower price circuit of INR 1,949.40.

The B2B marketplace posting INR 121 Cr in Q3 FY25 compared to INR 135.1 Cr in Q2 FY25.

Despite reporting a 48% year-on-year increase in net profit from INR 81.9 Cr in the same period last year, the company experienced a quarterly drop in paying subscribers, which fell by 3,715 compared to the September quarter.

This marked IndiaMART’s first quarterly decline in paying subscribers since Q1 FY22.

Brokerage firm Nomura termed the drop in paying subscribers as “unexpected,” contrasting with its expectation of a 2,000-subscriber addition.

Nomura subsequently downgraded IndiaMART’s stock to a “reduce” rating from its previous “neutral” rating and slashed the price target to INR 1,900 from INR 3,150, representing a 17% downside from Tuesday’s closing levels.

Even on the yearly matrix, supplier storefronts and paying supplier additions were largely muted, rising 5% YoY to 8 Mn and 1% YoY to 214K, respectively in the reported quarter.

However, another brokerage firm Motilal Oswal maintained its “buy” rating on the stock but reduced its price target to UNR 2,600, a potential upside of 13% from Tuesday’s closing.

The brokerage firm remained positive on strong fundamental growth in operations for IndiaMART.

It supports this idea by pointing to the rapid digitisation among SMEs, the demand for buyers outside their usual circles, a strong network effect, a market share of over 70% in its industry, and the potential to increase its average revenue per user (ARPU) due to low price sensitivity.

For Q3 FY25, IndiaMART’s revenue from operations surged 16% to INR 354.3 Cr from INR 305.3 Cr in the December quarter last year.

Sequentially, the top-line growth was muted as operating revenue rose a mere 1.9% from INR 347.7 Cr.

IndiaMART’s stock has witnessed a market slump in both short and long-term period. While the stock gave a negative return of 6.34% in the last month from the current market price, it slumped 13.52% in the last year.

IndiaMART was listed on the stock exchanges on July 4, 2019, its shares listed at a 21% premium to issue price at INR 1,180 on BSE.

Founded in 1999 by Dinesh Agarwal, IndiaMART is one of the oldest internet firms in India. The company connects buyers with sellers across 58 industries and 98K product categories such as consumer electronics, chemicals & dyes, construction and raw materials, clothing and apparel, cosmetics and personal care, pharmaceuticals and automobiles among others.

IndiaMART has invested in several new-age tech companies, including fintech startup Vyapar, legal tech startup Legistify, fraud detection startup IDfy, omnichannel inventory and warehouse management startup EasyEcom, HR tech startup Zimyo, logistics automation startup Fleetx, among others

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