Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating on Indiamart Intermesh Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was last revised on 24 November 2025, reflecting a shift from a previous 'Hold' position, but the detailed assessment below is based on the most recent data available as of 09 February 2026.
Quality Assessment
As of 09 February 2026, Indiamart Intermesh Ltd maintains a 'good' quality grade. This reflects the company’s solid operational foundation and consistent profitability metrics. The return on equity (ROE) stands at a robust 25.2%, signalling efficient utilisation of shareholder capital. However, the company’s operating profit growth over the past five years has been moderate, with a compound annual growth rate of 12.48%. This suggests that while the business model is fundamentally sound, growth momentum has been somewhat restrained in the longer term.
Valuation Considerations
The valuation grade for Indiamart Intermesh Ltd is classified as 'very expensive' as of today. The stock trades at a price-to-book (P/B) ratio of 6.3, which is significantly above typical market averages and indicates a premium valuation. Despite this, the stock is currently trading at a discount relative to its peers’ historical valuations, which may offer some valuation comfort. The price-earnings-to-growth (PEG) ratio is 0.8, suggesting that the stock’s price growth is somewhat aligned with its earnings growth, which has risen by 28.8% over the past year. Nevertheless, the elevated P/B ratio signals that investors are paying a high price for the company’s book value, which warrants caution.
Financial Trend Analysis
Financially, the company shows a 'positive' trend as of 09 February 2026. Over the past year, Indiamart Intermesh Ltd has delivered a stock return of 2.86%, which, while modest, is accompanied by a notable increase in profits of 28.8%. This divergence between profit growth and stock price appreciation suggests that the market may be pricing in concerns about sustainability or other risks. The company’s financial health remains stable, but the relatively slow stock price appreciation compared to earnings growth highlights potential investor reservations.
Technical Outlook
The technical grade for Indiamart Intermesh Ltd is 'mildly bearish' at present. Recent price movements show mixed signals: the stock has gained 0.02% in the last trading day and 4.32% over the past month, but it has declined by 8.66% over three months and 12.48% over six months. Year-to-date, the stock has increased by 0.59%. These fluctuations indicate some short-term volatility and a lack of clear upward momentum, which may contribute to the cautious technical rating.
Stock Performance Overview
As of 09 February 2026, Indiamart Intermesh Ltd’s stock performance reflects a mixed picture. While short-term gains have been recorded, the medium-term trend shows declines. The one-year return of 2.86% is modest, especially when compared to the company’s profit growth. This disparity suggests that investors may be weighing valuation concerns and technical signals more heavily than recent earnings improvements.
Implications for Investors
The 'Sell' rating advises investors to exercise caution with Indiamart Intermesh Ltd. While the company demonstrates strong quality and positive financial trends, the very expensive valuation and mildly bearish technical outlook temper enthusiasm. Investors should consider these factors carefully, particularly the premium price levels and recent price volatility, before making investment decisions. The rating reflects a balanced view that, despite some strengths, the stock currently carries risks that may outweigh potential rewards.
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Contextualising the Rating Within the Sector
Indiamart Intermesh Ltd operates within the E-Retail and E-Commerce sector, a space characterised by rapid innovation and intense competition. Compared to peers, the company’s valuation is on the higher side, which may reflect investor expectations of future growth or market leadership. However, the modest operating profit growth and mixed technical signals suggest that the company faces challenges in sustaining momentum. Investors should weigh these sector dynamics alongside the company’s individual metrics when considering their portfolio allocation.
Conclusion
In summary, Indiamart Intermesh Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 24 November 2025, is supported by a thorough analysis of its quality, valuation, financial trends, and technical outlook as of 09 February 2026. While the company exhibits strong profitability and positive financial trends, the very expensive valuation and subdued technical indicators suggest caution. Investors are advised to carefully assess these factors in the context of their investment objectives and risk tolerance before engaging with the stock.
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