Matrimony.com - IPO Note - Angel Broking

Incorporated in 2001, Matrimony.com (MCL) today is the leader in match making services. The company provides online matchmaking and marriage services through Internet and mobile platforms in India and internationally. Currently, the company has a huge database comprising of 3.08 million active profiles. Its flagship brand, BharatMatrimony, has 15 language based domains under its umbrella.

A trusted brand with strong consumer base and 140 retail centers: Strong brand recall and trust are the factors which determine the growth of Matrimony services in India. According to comScore Report, the average number of website pages viewed by unique visitors in June 2017, render Matrimony.com to be the leader in matrimony services. Further, the company has 140 retail centers distributed across India where potential or existing customers can walk in and seek the assistance of retail executives to register on websites and/or make payment for the matchmaking product or service of their choice.

Leader in online matchmaking service space in India: According to the comScore Report for June 2017, Matrimony.com is the leader in online matchmaking services in India in terms of the average number of website pages viewed by unique visitors, time spent and total pages viewed vis-à-vis peers, mainly on the back of the large database of profiles.

Huge untapped market opportunity: According to a KPMG report, unmarried population in CY2016 was 107mn, in which active seekers were 63mn, out of which only 6mn were active users of online matrimony. Currently, MCL has 3.08mn active profiles, leaving a scope for a huge untapped market opportunity for company.

Continuous expansion into marriage services: The company's key strategy for driving monetization is to strengthen the length of relationship with customers and increase the amount of revenue earned by offering additional marriage services to online matchmaking user base like availing wedding-related services i.e. photography & videography, wedding apparel & make-up, venue, stage decoration, catering and honeymoon packages from various vendors to meet customers' wedding needs.

Outlook & Valuation:

Going forward, we expect the company to perform better on top-line and bottomline front considering strong brand value, leadership position, robust technology and expansion into marriage services segment. Further, it has strong user data base, which provides competitive edge to the company. At the upper end of the price band, the pre issue P/E multiples works out be 35.7x of 1QFY2018 Annualized EPS, which is lower compared to peers (Info edge is trading at 46.4x its 1QFY2018 Annualized EPS). Hence, we recommend 'SUBSCRIBE' on the issue for a mid-to-long term period.

Source : Equity Bulls

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