Indiamart Intermesh Receives Quality Grade Change Amid Strong Sales and EBIT Growth

Indiamart Intermesh has recently undergone an evaluation revision, reflecting its current standing in the IT software sector. The company has demonstrated notable sales growth over the past five years, achieving a rate of 16.79%. Additionally, its EBIT growth during the same period stands at 27.08%, indicating a robust operational performance.
Financial metrics reveal a strong position, with an average EBIT to interest ratio of 45.99 and a debt to EBITDA ratio of just 0.16, suggesting effective debt management. The company maintains a net debt to equity ratio of 0.00, highlighting a solid capital structure. Furthermore, the sales to capital employed ratio averages at 0.61, while the tax ratio is reported at 21.98%.

In terms of shareholder returns, Indiamart's performance has varied against the Sensex, with a year-to-date return of 2.45% compared to the Sensex's 2.69%. Over a five-year horizon, Indiamart has achieved a return of 105.39%, although it has lagged behind the Sensex's 137.98% during the same period.

When compared to its peers, Indiamart holds a competitive position, with several companies in the sector also showing strong performance metrics. This context underscores the dynamic landscape of the IT software industry, where Indiamart continues to navigate its growth trajectory.