IndiaMART InterMESH shares zoom to 52-week high after strong Q1 results, buyback announcement

IndiaMART InterMESH shares skyrocketed to a 52-week high on Friday, a day after the online business-to-business (B2B) marketplace reported a strong set of quarterly numbers and announced a buyback of shares. IndiaMART shares jumped by as much as Rs 246.5 or 8.5 per cent to Rs 3,145.8 apiece on BSE, surpassing their existing 52-week high of Rs 3,050.7 touched in May. 

The stock traded in large volumes. At 10:26 am, the stock held on to much of its intraday gains at Rs 3,140 apiece on the bourse. As many as 52,000 IndiaMART shares changed hands on the exchange in intraday trade so far as against a daily average of 18,000 in the past two weeks, according to provisional exchange data.

IndiaMART InterMESH Q1 results: A summary

After market hours on Thursday, IndiaMART InterMESH reported a 48.2 per cent year-on-year jump in net profit to Rs 83 crore for the quarter ended June 2023.

Its revenue grew 4.8 per cent to Rs 282 crore compared with the corresponding period a year ago, according to a regulatory filing.

The company's margin — a key measure of profitability — improved by 280 basis points on a year-on-year basis to 27.4 per cent for the three-month period. 

IndiaMART InterMESH share buyback

The company's board approved a proposal to buy back shares worth up to Rs 500 crore, at Rs 4,000 apiece, via tender route, subject to shareholders' nod. The price indicates a premium of 39.2 per cent over the market price.

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