InvestorQ : Why is Indiamart stock touching new lows on a daily basis?
Lavanya Subramanian made post

Why is Indiamart stock touching new lows on a daily basis?

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Anamika Sodhani answered.
1 month ago
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It has not been a good time for ecommerce players and a classic example is how the B2B leader Indiamart Intermesh has suffered after being a stock market darling for a long time. The stock recently hit a 52-week low of Rs3,751. In fact, the stock is now trading even below its pandemic lows.

Despite the company making a buyback offer at Rs6,250 per share, the markets are far from impressed as rich valuations come back to roost. In the last 6 months, IndiaMart lost 43%. For FY21, its operating margins contracted 800 basis points as higher manpower, sales and distribution costs, led to a sharp contraction in the EBITDA margins to just about 28%.

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