Started in 2001, at Chennai Matrimony.com Limited's business currently comprises two segments – (i) matchmaking services and (ii) marriage services and related sale of products. In fiscal 2017, matchmaking services and marriage services accounted for all of their revenue and there was no revenue from the related sale of products. According to the comScore Report, they are the leading provider of online matchmaking services in India in terms of the average number of website pages viewed by unique visitors in March 2017 (Matrimony.com data does not include data from all sites under Matrimony.com). They deliver matchmaking services to their users in India and the Indian diaspora through our websites, mobile sites and mobile apps complemented by their on-the-ground network in India. Their brand, BharatMatrimony.com, has been ranked as India's most trusted online matrimony brand by The Brand Trust Report India Study 2014 (a study covering 20,000 brands across 16 cities) and they believe that their other matchmaking brands such as CommunityMatrimony.com and EliteMatrimony.com are well-established in India. They intend to continue to invest in our mobile platform in view of the increasing mobile usage among users in India. To increase their footprint on the mobile platform, they have developed a range of mobile apps across mobile platforms including iOS, Android and Windows and intend to continue to expand their mobile offerings. They have recently introduced mobile apps for our BharatMatrimony regional sites and certain community sites which have led to an increase in profile registrations. Company is also trying to get market share for other marriage related services like catering, decoration, venue, gifts and photography which accounts approx 61% of total marriage spends. For this purpose company has launched different websites MatrimonyDirectory.com, MatrimonyPhotography.com, MatrimonyBazaar.com and MatrimonyMandaps.com. On performance front, Matrimony has (on consolidated basis) posted total revenue/net profits of Rs. 207.31 cr. / Rs. – (9.14) cr. (FY14), Rs. 242.84 cr. / Rs. – (2.90) cr. (FY15), Rs. 255.43 cr. / Rs. – (75.06) cr. (FY16), Rs. 292.93 cr. / Rs. 43.78 cr. (FY17). For Q1 ended on 30.06.17 of current fiscal, it has earned net profit of Rs. 14.62 crore on total revenue of Rs. 83.89 crore. As on 30.06.17 it’s paid up equity capital of Rs. 10.63 crore had a negative reserves of Rs. - (26.80) crore. If we annualize the latest earnings and attribute it on its equity then asking price is at a P/E of 38 plus. As it has a negative book value as on 30.06.17, P/BV cannot be ascertained. Last three fiscals Matrimony has posted an average negative EPS of Rs. – (7.07) and average RoNW is - (15.02%). Company has hived off its non-core and non-profit making business. Company has been posting improved performance on Q-o-Q basis for past few quarters. It has no listed peers to compare with. However, few internets based service providing companies are trading at a P/E of around 30 and below. As per financials, company's growth is good, RoNW is - (15.02%) for last three fiscals, book value is negative and as per issue price it looks fully priced. But, market leader position in its business category and first mover gives its added advantage. So we give 'NEUTRAL' rating to this IPO.
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