IndiaMART InterMESH up 4% after MOFSL initiates coverage with “BUY” rating

Shares of IndiaMART InterMESH, India’s largest B2B online classifieds marketplace, gained as much as 4 per cent to Rs 3,107 apiece on the BSE after the domestic brokerage firm Motilal Oswal Financial Services (MOFSL) initiated the coverage on the stock with a “BUY” rating. The target price has been set at Rs 3,550 – up 19 per cent from Thursday’s close.

IndiaMART operates in a sweet spot, wherein high-growth SMEs fuel the top line and a subscription-based model limits the risk of default. Margins mirror the positive operating leverage from revenue growth in the business, the brokerage said in its report.