Matrimony.com Ltd - Q2FY21 Company Update - ICICI Direct

Matrimony.com Ltd's (Matrimony) revenues increased 7.5% QoQ (up 1.1% YoY) mainly led by 7.6% QoQ growth (up 4.6% QoQ) in matchmaking services (led by 25.7% YoY growth in paid subscribers). EBITDA margins were flat QoQ (up 250 bps YoY) at 17.7%. Net profit increased 9.6% QoQ (up 31.2% YoY) to Rs. 10.3 crore. Billing increased 18.5% QoQ (9.7% YoY) mainly led by 18.5% QoQ (13.5% YoY) growth in matchmaking services.

Valuation & Outlook

We expect the company to see improving revenues in coming quarters led by double digit growth in billings, higher conversion of paid subscribers and improving market share in the north. This coupled with leadership in an underpenetrated online match making industry, substantial market share in south, east and west region, healthy balance sheet, improving margins and strong cash flow generation prompt us to remain positive on the stock. This coupled with 27% CAGR in PAT in FY20-23E prompts us to maintain BUY recommendation on the stock with revised target price of Rs. 800/share (30x FY23E EPS, 3.0x FY23E sales).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Matrimony_CoUpdate_Nov20.pdf

Shares of Matrimony.com Ltd was last trading in BSE at Rs.658.65 as compared to the previous close of Rs. 670.85. The total number of shares traded during the day was 891 in over 256 trades.

The stock hit an intraday high of Rs. 690 and intraday low of 648. The net turnover during the day was Rs. 590363.

Source : Equity Bulls

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