Matrimony.com, India’s leading online matchmaking service, is all set to capitalize on a strong database of marriageable‐age members. The average 11‐13mn weddings per year over the next five years augur well for the company. Given its strong brand recall and robust network of 140 retail centers besides growing awareness of internet usage, the company is perfectly poised to dominate the largely unorganized and fragmented matchmaking market. Unlike developed countries, there’s a huge demand for matchmaking within communities/castes in India. Adopted a micromarket strategy for addressing this need, the company has built over 300 community portals. Matrimony.com has clocked a revenue CAGR of 11.6% over the span FY13‐17. It incurred losses during FY14‐16 from a litigation that cost it ~Rs.1bn spread over the said years. Now that the litigation is settled, the company’s profitability has gradually looked up with a PAT of Rs.438mn and Rs.146mn in FY17 and Q1 FY18 respectively. Matrimony.com’s negative net worth of Rs.162mn as of June 2017 is a vast improvement from the March figure of negative Rs.761mn, largely the outcome of the post FY17 profitability.
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IPO proceeds are expected to be gainfully utilized leading to higher revenues from increased brand awareness and lower rentals and interest expenses. Focused expansion of its marriage services business through cross selling and assisted services could also help the company move up the value chain. The stock is available at ~51x FY17 P/E with a 10% discount to retail investors. It may be noted that the nature of the Matrimony.com business is not comparable to that of Just Dial and Info Edge. We recommend Subscribe for listing gains.
The India Infoline group, comprising the holding company, India Infoline Ltd and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from equity research, equities and derivatives trading, commodities trading, portfolio management services, mutual funds, life insurance, fixed deposits, GOI bonds and other small savings instruments to loan products and investment banking. The company has a network of over 2100 business locations (branches and sub-brokers) spread across more than 450 cities and towns & caters to approximately a million customers.
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