External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

Key points (machine generated)<ul><li>IndiaMart is India's largest online B2B marketplace with a market cap of $2 billion.</li><li>The company has a 60% market share of B2B e-commerce in India, indicating a large potential for growth.</li><li>IndiaMart benefits from a negative working capital business model, upfront supplier subscription payments, and a net cash balance sheet. It also has the option to invest in new business lines to expand its monetization opportunities. Despite limited advertising spend, the platform attracts over 1 billion in traffic.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)IndiaMart is India's largest online B2B marketplace with a market cap of $2 billion.The company has a 60% market share of B2B e-commerce in India, indicating a large potential for growth.IndiaMart benefits from a negative working capital business model, upfront supplier subscription payments, and a net cash balance sheet. It also has the option to invest in new business lines to expand its monetization opportunities. Despite limited advertising spend, the platform attracts over 1 billion in traffic.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Indiamart Intermesh (INDIAMART) - Friday, Oct 20, 2023

Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

<ul>
<li>
<a href="https://www.smartkarma.com/entities/indiamart-intermesh-limited" target="_blank" data-smartkarma-citation="entities:27733:1" rel="noopener">IndiaMart (INMART IN)</a>'s annual report analysis highlights some of the issues that should not be overlooked.</li>
<li>In addition to changes in important disclosures, the company still continues to see less flow-through of deferred income into revenues.</li>
<li>On the assets side, it should be noted that the strategic investments are yet to show any promise, while fixed assets show some concerns including non-verification, disposals, etc.</li>
</ul>



IndiaMart (INMART IN)'s annual report analysis highlights some of the issues that should not be overlooked.
In addition to changes in important disclosures, the company still continues to see less flow-through of deferred income into revenues.
On the assets side, it should be noted that the strategic investments are yet to show any promise, while fixed assets show some concerns including non-verification, disposals, etc.


Indiamart Intermesh Ltd- Forensic Analysis

<ul>
<li>
<a href="https://www.smartkarma.com/entities/indiamart-intermesh-limited" target="_blank" data-smartkarma-citation="entities:27733:1" rel="noopener">IndiaMart (INMART IN)</a>'s volume growth is expected to under-power in 2022 due to both internal and external factors. The company might struggle to acquire increasing growth in subscribers.</li>
<li>Cost savings are likely to perish in future. This would put margins under pressure.</li>
<li>As a proxy for SMEs and MSMEs, lack of business confidence and hazy pent-up demand can turn into major headwinds.</li>
</ul>



IndiaMart (INMART IN)'s volume growth is expected to under-power in 2022 due to both internal and external factors. The company might struggle to acquire increasing growth in subscribers.
Cost savings are likely to perish in future. This would put margins under pressure.
As a proxy for SMEs and MSMEs, lack of business confidence and hazy pent-up demand can turn into major headwinds.


2022 High Conviction- IndiaMart (INMART IN)- Bet Against Growth Propellants

We had written about this largest 'B2B Market-Leader' back when it got listed in 2019. Since listing, <a href="https://www.smartkarma.com/entities/indiamart-intermesh-limited" target="_blank" data-smartkarma-citation="entities:27733:1" rel="noopener">IndiaMart (INMART IN)</a> has attracted a lot of eyes in the market, but the numbers in the last two years especially have been in line with our expectations of a slowdown. When it comes to the nitty-gritty of the operations, we have uncovered several operational discomforts that question whether the company is really growing? Or is it just reporting growth? Horrors of slowdown and de-growth which has been evident recently, is starting to haunt the company.
In this insight, we highlight several fundamental issues with the balance sheet and reported metrics (updated with the F21 results) that lead us to believe that company is no-where a giant of a growth company that the management believes. 
IndiaMART may have reported a constant upsurge in the buyers and enquiries, alongside a formidable growth in PAT, but a closer look at the numbers, especially unreasonable trends in revenue growth, platform growth, collection and employee costs, tell us something else and leads us to believe that a slowdown was evident. Also as more and more financial information is available our core belief of reported accounts not reflecting reality is strengthened.

We had written about this largest 'B2B Market-Leader' back when it got listed in 2019. Since listing, IndiaMart (INMART IN) has attracted a lot of eyes in the market, but the numbers in the last two years especially have been in line with our expectations of a slowdown. When it comes to the nitty-gritty of the operations, we have uncovered several operational discomforts that question whether the company is really growing? Or is it just reporting growth? Horrors of slowdown and de-growth which has been evident recently, is starting to haunt the company.
In this insight, we highlight several fundamental issues with the balance sheet and reported metrics (updated with the F21 results) that lead us to believe that company is no-where a giant of a growth company that the management believes. 
IndiaMART may have reported a constant upsurge in the buyers and enquiries, alongside a formidable growth in PAT, but a closer look at the numbers, especially unreasonable trends in revenue growth, platform growth, collection and employee costs, tell us something else and leads us to believe that a slowdown was evident. Also as more and more financial information is available our core belief of reported accounts not reflecting reality is strengthened.

IndiaMart InterMesh Ltd: Audible Phantom Notes

Consumer Analyst / Channel Surveillance Specialist, Trudence Capital Advisors

Pranav Bhavsar

Consumer Analyst / Channel Surveillance Specialist

<ul>
<li>Due to the ongoing earnings season, for the next couple of weeks, we will temporarily deviate from our regular format and instead focus on reported earnings.</li>
<li>
<a href="https://www.smartkarma.com/entities/hdfc-bank-ltd-4b6b7a92-9087-468d-9dbe-ab169e77f014" target="_blank" data-smartkarma-citation="entities:558:1" rel="noopener">HDFC Bank (HDFCB IN)</a> - The core concerns that worry the street do warrant attention. While the management believes it is temporary, we anticipate some more incremental pain ahead. </li>
<li>Other interesting names highlighted include <a href="https://www.smartkarma.com/entities/delta-corp-ltd" target="_blank" data-smartkarma-citation="entities:4627:1" rel="noopener">Delta Corp Ltd (DELTA IN)</a>, <a href="https://www.smartkarma.com/entities/indiamart-intermesh-limited" target="_blank" data-smartkarma-citation="entities:27733:1" rel="noopener">IndiaMart (INMART IN)</a>, <a href="https://www.smartkarma.com/entities/polycab-india-ltd" target="_blank" data-smartkarma-citation="entities:27877:1" rel="noopener">Polycab India (POLYCAB IN)</a>, and <a href="https://www.smartkarma.com/entities/poonawalla-fincorp" target="_blank" data-smartkarma-citation="entities:3449:1" rel="noopener">Poonawalla Fincorp (POONAWAL IN)</a>. </li>
</ul>


Due to the ongoing earnings season, for the next couple of weeks, we will temporarily deviate from our regular format and instead focus on reported earnings.

HDFC Bank (HDFCB IN) - The core concerns that worry the street do warrant attention. While the management believes it is temporary, we anticipate some more incremental pain ahead. 
Other interesting names highlighted include Delta Corp Ltd (DELTA IN), IndiaMart (INMART IN), Polycab India (POLYCAB IN), and Poonawalla Fincorp (POONAWAL IN). 


[Week 17] Namaste India 🙏 | Earnings Edition | HDFCB's Core Concerns

India

IndiaMart InterMesh Limited operates as an e-commerce company. The Company offers air coolers, tower fans, washing machines, mixer grinders, barcode printers, steel pipes, tubes, water tanks, roofing supplies, mobile phones, computers, automobile parts, and machine tools. IndiaMart Intermesh markets its products in India

IndiaMart (INMART IN)

Indiamart Intermesh (INDIAMART) - Friday, Oct 20, 2023

IndiaMart is India's largest online B2B marketplace with a market cap of $2 billion.The company has a 60% market share of B2B e-commerce in India,...

Value Investors Club

Indiamart Intermesh Ltd- Forensic Analysis

IndiaMart's forensics highlight some of the issues that should not be overlooked. These pertain to deferred income flow-through, changes in...

Nitin Mangal

2022 High Conviction- IndiaMart (INMART IN)- Bet Against Growth Propellants

IndiaMart's volume growth is expected to under-power in 2022 due to both internal and external factors. The company might struggle to acquire...

Nitin Mangal

IndiaMart InterMesh Ltd: Audible Phantom Notes

IndiaMART may have reported a constant upsurge in the buyers and enquiries, alongside a formidable growth in PAT, but a closer look at the numbers...

Nitin Mangal

[Week 17] Namaste India 🙏 | Earnings Edition | HDFCB's Core Concerns

During the earnings season, the focus will shift to reported earnings. HDFC Bank's concerns are causing worry, and there may be more challenges...

Pranav Bhavsar

Indiamart Intermesh (INDIAMART) - Friday, Oct 20, 2023

IndiaMart is India's largest online B2B marketplace with a market cap of $2 billion.The company has a 60% market share of B2B e-commerce in India,...

Value Investors Club

Indiamart Intermesh Ltd- Forensic Analysis

IndiaMart's forensics highlight some of the issues that should not be overlooked. These pertain to deferred income flow-through, changes in...

Nitin Mangal

2022 High Conviction- IndiaMart (INMART IN)- Bet Against Growth Propellants

IndiaMart's volume growth is expected to under-power in 2022 due to both internal and external factors. The company might struggle to acquire...

Nitin Mangal

IndiaMart InterMesh Ltd: Audible Phantom Notes

IndiaMART may have reported a constant upsurge in the buyers and enquiries, alongside a formidable growth in PAT, but a closer look at the numbers...

Nitin Mangal

[Week 17] Namaste India 🙏 | Earnings Edition | HDFCB's Core Concerns

​During the earnings season, the focus will shift to reported earnings. HDFC Bank's concerns are causing worry, and there may be more challenges...

Pranav Bhavsar

During the earnings season, the focus will shift to reported earnings. HDFC Bank's concerns are causing worry, and there may be more challenges...