Reviews

In this edition, we have reviewed IndiaMART Intermesh and Galaxy Surfactants . We suggest our reader-investors to HOLD IndiaMART Intermesh and Galaxy Surfactants 



We had recommended IndiaMART Intermesh Limited in Volume 37, Issue No. 3 dated January 3 to 16, 2021 under the ‘Choice Scrip’ segment. The recommended price for the stock was ₹2,815.15. We had recommended the stock on the basis of strong return ratio, good growth prospects and near-term expansion plans. The largest online B2B marketplace in India, IndiaMART Intermesh links suppliers and customers. With 60 per cent market share of the online B2B classified space in India, the channel focuses on providing a platform to small and medium enterprises (SMEs), large enterprises as well as individuals.

It handles 97,000 different product categories from thousands of Indian towns and cities, including cranes, textiles and medical equipment. Several significant vendors in the company’s marketplace include Agfa Healthcare India, Case New Holland Construction Equipment (India), Hilti India, JCB India and Nobel Hygiene. On the financial front, the net sales of the company have grown by 31.91 per cent to ₹240.60 crore in Q2FY23 versus ₹182.40 crore in the same quarter of the previous year. The operating profit of the company stood at ₹113.80 crore in Q2FY23 and witnessed a fall of 0.7 per cent YoY from ₹114.60 crore.

The net profit also slipped by 5.6 per cent YoY to ₹79.80 crore in Q2FY23 versus ₹84 crore in Q2FY22. In annual terms, the net sales have showcased decent growth of 12.53 per cent and stood at ₹753.50 crore in FY22 as against ₹669.60 crore in FY21. The operating profit of the company in FY22 was ₹420, indicating growth of 1.25 per cent from ₹414.80 crore in FY21. The company has witnessed 9.66 per cent increase in net profit to ₹309.80 crore in FY22 as against ₹282.50 crore in the previous fiscal. The traffic on the company’s website continues to be strong with total visits for the quarter at 1,071 million.

This indicates 26 per cent CAGR growth over the last five years. IndiaMART Intermesh has reported consistent growth in registered buyers which grew to 160 million at a growth of 3.8 per cent QoQ. It has also expanded its foothold in terms of the number of products live on the platform to 87 million, registering a growth of 4.8 per cent QoQ. Total business enquiries delivered stood at 151 million, demonstrating growth of 2.6 per cent QoQ. The company offers high growth potential thanks to rapid technology development, the inclusion of existing users and rising traffic. Hence, we recommend HOLD. 






We had recommended Galaxy Surfactants Limited in Volume 37, Issue No. 3 dated Jan 3 to 16, 2021 under the ‘Cover Story’ segment. The recommended price for the stock was ₹3,052.55. We had recommended the stock on the basis of huge growth potential, focus on cost reduction and good returns on capital employed. Galaxy Surfactants Ltd. is an Indian multinational chemical company. A major manufacturer of non-ionic, anionic, cationic and amphoteric surfactants as well as other specialised chemical suppliers, it serves both the domestic and global markets for the home and personal care sector. It produces surfactants and specialty chemicals for the cleaning and personal care industries, and it exports more than 200 of its products to more than 100 nations. 

Over 1,400 companies, including L’Oréal, Unilever, Colgate-Palmolive, Dabur, Himalaya and others are among its clientele. Performance surfactants account for 60 per cent of revenue and specialty personal care products account for the rest. An Indian MNC that manufactures 200+ products, it caters to 1,750+ customers in 80+ countries. It has seven state-of-the-art plants with five manufacturing facilities in India, one in Egypt and one in USA. Up to 90 per cent Indian consumers use goods which have its surfactants or specialist care products at least once in their daily routine. It reported total revenue of ₹2,627.38 crore in FY 2022 compared to ₹1,834.90 crore in 2021. Up to two-third of their business comes from international customers.

On the financial front, the company’s net sales have slightly improved by 40.39 per cent to ₹1,231.63 crore in Q2FY23 as against ₹877.30 crore in Q2FY22. The operating income of the company has also grown by 74.9 per cent in Q2FY23 to ₹132.77 crore, while in the same quarter of the previous year it was ₹75.91 crore. The net profit of the company has showed tremendous growth of 99.98 per cent YoY to ₹83.87 crore in Q2FY23 as against ₹41.94 crore. On an annual basis, the company has recorded 32.39 per cent growth in net sales to ₹3,685.71 crore in FY22 versus ₹2,784.06 crore in FY21.

The operating profit of the company has declined by 10.11 per cent in FY22 to ₹413.22 crore versus ₹459.69 crore in FY21. The net profit contracted and stood at ₹262.78 crore, falling by 13.03 per cent. The markets in India and the United States are bright spots and they will continue to drive volume growth. The previous quarter saw the company produce its highest quarterly revenue and PAT. In India, demand remained steady and it actually increased for more expensive goods. There has been a significant decline in freight rates, raw material prices and improved availability of raw material as compared to last year. Hence, we recommend HOLD.