Q3FY21 Company Update - Matrimony.com Ltd - ICICI Direct

Matrimony.com Ltd's (Matrimony) revenues increased 3.6% QoQ (up 7.4% YoY) to Rs. 96.7 crore mainly led by 3.8% QoQ (up 9.6% YoY) growth in matchmaking services (led by 31% YoY growth in paid subscribers). EBITDA margins increased 121 bps QoQ (up 694 bps YoY) at 18.9% mainly led by 317 bps QoQ increase in gross margins and operating leverage partially offset by 255 bps QoQ increase in advertising expenses. PAT increased 7.4% QoQ (up 96.5% YoY) to Rs. 11.0 crore. Billing increased 3.6% QoQ (9.0% YoY) to Rs. 100.1 crore mainly led by 3.8% QoQ (11.6% YoY) growth in matchmaking services.

Valuation & Outlook

Improving billing growth, improvement in match making services, growth in personalised services & retail, healthy subscriber growth, inorganic growth and increasing market share in north prompt us to believe the company will be able maintain healthy double digit revenue growth in coming years. In addition, expectation of stable advertising expenses and operating leverage benefit prompt us to revise our EPS estimates upwards. This coupled with leadership in an underpenetrated online match making industry and strong cash flow generation prompt us to maintain BUY on the stock with a revised target price of Rs. 1,070 (30x PE on FY23E EPS) (earlier target price of Rs. 800).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Matrimony_CoUpdate_Feb21.pdf

Shares of Matrimony.com Ltd was last trading in BSE at Rs.850.1 as compared to the previous close of Rs. 859.3. The total number of shares traded during the day was 2912 in over 476 trades.

The stock hit an intraday high of Rs. 897.55 and intraday low of 850. The net turnover during the day was Rs. 2554949.

Source : Equity Bulls

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