HDFC Securities has trimmed IndiaMART InterMESH's target price by approximately 6% to ₹2,400 from ₹2,550, even as it maintains a BUY rating on the stock. According to NDTV Profit, this revision reflects ongoing challenges in the company's lower-tier customer base, with persistent churn continuing to impact subscriber additions and overall growth momentum. The brokerage highlighted that elevated churn in the silver-tier segment has dragged down subscriber additions significantly below historical averages, affecting collections and revenue visibility. Despite reducing estimates by 1-2%, HDFC Securities remains constructive on the stock, supported by its strong platform quality and sticky gold and platinum customer base.
The company faces stagnation in unique business enquiries generated (UBEs), which dropped from ~31 million in Q2 FY26 to ~27 million in Q4 FY26, representing an 8-quarter CAGR of 1.5%. As reported by NDTV Profit, this decline results in decreased quantity of relevant leads available for silver-tier members, as most relevant leads are converted by gold and platinum tier customers. The recent price hike implementation has further pressured net additions, with the company experiencing a ~2K drop in net additions over the last two quarters. Despite multiple initiatives including improving lead quality and reducing supplier competition per lead, the company has not achieved meaningful success in curbing churn.
Brokerages issued mixed stock calls on multiple companies today, with recommendations spanning across various sectors. According to reports from ET Now, the recommendations cover IndiaMART InterMESH, Kotak Mahindra Bank, SRF, Polycab, KEI Industries, and others, with different brokerage firms maintaining varying ratings and target prices. KEI Industries also maintained a BUY rating from Motilal Oswal with a target price of ₹6,640, indicating strong brokerage confidence in the industrial sector. The contrasting views reflect selective brokerage approaches based on company-specific fundamentals, growth prospects, and market conditions across different industry segments.
Despite current challenges, HDFC Securities notes that growth is led by average revenue per user expansion, driven by platinum-tier customers buying pan-India packages, category-based pricing, gradual up-tier migration of gold and silver cohorts, and price hikes. The brokerage expects revenue growth to moderate to low double digits but remains constructive on the stock, supported by its strong platform quality and sticky gold and platinum customer base. NDTV Profit reports that the brokerage continues to expect low double-digit growth, with potential acceleration once current churn issues are resolved.
Kotak Mahindra Bank received a BUY rating from Motilal Oswal with a target price of ₹470. According to ET Now, this recommendation suggests positive outlook for the banking sector and the specific company's performance prospects. The banking sector recommendations reflect selective brokerage views based on company-specific factors and market conditions, with mixed ratings across different sectors indicating varied confidence levels in various industry segments.
