Matrimony.com Limited the operator of online match making business under the BharatMatrimony brand, will launch its initial public offer (IPO) on September 11. Matrimony Ltd, which is engaged in providing online matchmaking and marriage services plans to raise over Rs 500 crore through the IPO Issue. Matrimony.com IPO Issue comprises fresh issue of up to Rs 130 crore and an offer for sale (OFS) of up to 37,67,254 shares with Rs 5 face value each.
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Peer Group Comparision
Matrimony.com Limited is a provider of online matrimonial services, including online matchmaking services, marriage services and related sale of other products and services. In the Strict sense, none of the listed companies in India are focused on these segments. However some internet based services companies are listed and they can loosely be considered as its peer group for an overall comparison.
| Rs. In Crores | ||||
| Name of the Company | Just Dial | Info Edge(fy17) | Infoedge(fy16) | Bharat Matrimony |
| Revenue (Rs. Crores) | 718.61 | 887.63 | 747.51 | 280.7 |
| Sales Growth | 8% | 19% | 2% | 15% |
| EBIDTA | 196.64 | 41.81 | 202.37 | 59.2 |
| EBIDTA Margin | 27.36% | 4.71% | 27.07% | 21.09% |
| Net Profit | 121.36 | -42.69 | 117.85 | 43.7 |
| Net Profit Margin | 16.89% | 15.77% | 15.57% | |
| Share Capital | 69.54 | 121.08 | 120.72 | 11.26 |
| Face Value | 10 | 10 | 10 | 5 |
| Market / IPO Price | 378.60 | 983.3 | 983.3 | 985 |
| Basic EPS (`) | 17.45 | NA | 9.76 | 23.1 |
| P/E | 21.69 | N.A. | 100.72 | 42.64 |
| RoNW (%) | 13.41% | -2.68% | NA | 140.60% |
| NAV (`) | 130.19 | 131.37 | 127.78 | -14.67 |
| Price/BV | 2.91 | 7.48 | 7.70 | NA |
| Markt Cap | 2633 | 11906 | 11870 | 2218 |
| Market Cap/ Sales | 3.66 | 13.41 | 15.88 | 7.90 |
About Just Dial Limited
Just Dial Limited was incorporated in in the year 1993. The Company provides local search and related services to users in India through multiple platforms such as the internet mobile internet over the telephone (voice) and text (SMS). Just Dial’s core business is local search services in many categories like restaurants,doctors, ordering flowers, on demand services etc. Its services labeled as “Search Plus Service” offer online transactions on web and app. The service extends from providing address and contact details of business establishments around the country, to making orders and reservations for leisure, medical, financial, travel and domestic purposes.
About InfoEdge
InfoEdge India Ltd is India’s premier on-line classifieds company incorporated in the year 1995. It has several offices located in the country as well as offices in Dubai & Riyadh. The company is the leading provider of online recruitment services as well as matrimonial, real estate & education classifieds in India. The company has three subsidiary companies namely Naukri Internet Services Private Ltd, Jeevansathi Internet Services Private Ltd and Info Edge (India) Mauritius Ltd. The company provides recruitment classifieds and related services through Naukri.com Naukrigulf.com and Quadrangle business divisions. It also provides matrimonial and property related classifieds and related services through their Jeevansathi.com & 99acres.com respectively. Companies portals include naukrigulf.com, asknaukri.com, brijj.com , shiksha.com, 99acres.com, Allcheckdeals.com etc. Info Edge has also invested in Applect Learning Systems Pvt. Limited (www.meritnation.com), Zomato Media Private Limited(www.zomato.com), Kinobeo Software Private Limited (www.mydala.com), Canvera Digital Technologies Pvt. Ltd (www.canvera.com), Happily Unmarried Pvt. Ltd (www.happilyunmarried.com) and Nogle Technologies Pvt Limited (www.floost.com). InfoEdge is also the leading promoter of Zomato, a restaurant search and discovery service founded in 2008 . It also has a stake in Policy Baazar.com
About Matrimony.com Limited
Matrimony.com Limited was Incorporated in 2001 and is is the leading provider of Online Match making Services in India in terms of the average number of website pages viewed by unique visitors in June 2017. Matrimony is considered as one of the pioneers in online matchmaking services in India through its websites, mobile sites and mobile apps . It claims to have a large database of profiles comprising 3.03 million active profiles as on end of FY 17.
Assessment:
- Revenue wise Justdial and InfoEdge are 2-3 times the size of Matrimony.com Limited.
- Leave certain blips, all three enjoy almost same Net Profit Margins though gross margins of Justdial and Infoedge are slightly more than that of Matrimony.com. Matrimony could reach same levels this year if its quarterly results are an indication.
- Online search engine Just Dial, with Rs. 800 crore topline and 27% EBITDA margin for FY17, is ruling at PE and Marketcap/Sales multiples of 31x and 3.7x respectively, much less than that demanded by Matrimony.com IPO
- InfoEdge having a diverse basket of internet based business such as naukri.com, jeevansathi.com, 99acres.com, zomato and policybazaar is better placed for growth
- Matromony.com is practically operating in a single vertical. In the past it incurred large amount on settlement of a single legal case. This can be viewed in negative sense but at the same time. the closure of this case and with significant amounts paid already, it may also translate into improvement in profit margins going forward.
- Company has negative book value and overall Matrimony.com IPO seems to have been priced rather aggressively.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. I may have vested interest in every stock I discuss and my views may be biased. Please do your own due diligence as stock market investments have high degree of inherent risk.