Indiamart Intermesh Ltd.
ISIN: INE933S01016 • Market Cap: ₹10,422 Cr
The 5-Pillar Quality Audit for Indiamart Intermesh Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (33.7%), Return on Capital Employed (21.6%), and equity compounding (19.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (10.4%) and 3Y PAT CAGR (18.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 21.12 vs PEG of — and Dividend Yield of 3.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 49.1%, backed by 32.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 21.6%)
Indiamart Intermesh Ltd. generates exceptional return on capital employed of 21.6%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 19.8%)
Shareholder equity compounds at a healthy 19.8%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
High-Velocity Profit Compounding (3Y PAT CAGR: 18.0%)
Net earnings have compounded at 18.0% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 21.12)
Trading at a P/E multiple of 21.12, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (32.0%)
Mutual funds, domestic DIIs, and foreign FIIs hold 32.0%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Services space.
Quantitative Strategy Eligibility
Checking INDIAMART against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 84/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Consumer Services Sector Peer Comparison
Compare INDIAMART directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Indiamart Intermesh Ltd. (INDIAMART)Current | 84/100 | ₹10,422 Cr | 21.12 | 21.6% | 0.00 | — |
| Eternal Ltd. (ETERNAL) | 61/100 | ₹3.09 Lakh Cr | 713.64 | 2.9% | 0.00 | View |
| Avenue Supermarts Ltd. (DMART) | 66/100 | ₹2.60 Lakh Cr | 84.88 | 16.4% | 0.04 | View |
| Trent Ltd. (TRENT) | 74/100 | ₹1.57 Lakh Cr | 86.78 | 29.6% | 0.07 | View |
| Lenskart Solutions Ltd. (LENSKART) | 63/100 | ₹1.11 Lakh Cr | 169.67 | 8.4% | 0.03 | View |
| Indian Hotels Co. Ltd. (INDHOTEL) | 75/100 | ₹1.03 Lakh Cr | 48.02 | 16.0% | 0.00 | View |
Frequently Asked Questions: Indiamart Intermesh Ltd.
Q:What is the 5-Pillar Fundamental Score for Indiamart Intermesh Ltd. (INDIAMART)?
Indiamart Intermesh Ltd. has a RupeeTools Fundamental Score of 84/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (92/100), Financial Health (81/100), Growth (79/100), Valuation (88/100), and Ownership Quality (78/100).
Q:Is INDIAMART fundamentally strong for long-term investment?
Yes, INDIAMART exhibits solid fundamental strength with a 84/100 score, driven by a return on equity of 19.8% and a debt-to-equity ratio of 0.00.
Q:Does INDIAMART pass the Coffee Can Investing filter?
Yes! INDIAMART satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does INDIAMART compare against other Consumer Services peers?
Within India's Consumer Services sector, INDIAMART trades at a P/E of 21.12 and generates an ROCE of 21.6%. Compare its 5-Pillar score of 84/100 against top sector peers like Eternal Ltd. (61/100), Avenue Supermarts Ltd. (66/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.