Matrimony.com Limited’s business currently comprises two segments – (i) matchmaking services and (ii) marriage services and related sale of products. In fiscal 2017 and the three months ended June 30, 2017, matchmaking services and marriage services accounted for all of their revenue and there was no revenue from the related sale of products. They deliver matchmaking services to their users in India and the Indian diaspora through their websites, mobile sites and mobile apps complemented by their on-the-ground network in India. Their brand, Bharat Matrimony.com has been ranked as India’s most trusted online matrimony brand.

Strengths:

  • Large database of profiles and consequential network effect.
  • Micro market strategy and customised or personalised services.
  • Strong consumer brand.
  • Wide on-the-ground network for customer acquisition and support.

metrimony.com IPO

Key Highlights:

  • The company has generated total revenue of Rs 292.93 crore for March 2017 vs Rs 255.42 crore in March 2016.Shows growth of more than 15%.
  • On the bottom line side, the company has reported profit of Rs 43.78 cr in March 2017, while it was in loss for the fiscal years of 2014, 2015 and 2016.

Risk Factors:

  • They rely on telecommunications and information technology systems, networks and infrastructure to operate their business and any interruption or breakdown in such systems, networks or infrastructure or their technical systems could impair their ability to effectively provide their products and services.
  • If third parties, including their current or future competitors, or their employees are able to circumvent their protection measures which are put in place for the protection of their database or systematically copy their online content or misappropriate confidential information, their business and reputation would be adversely affected.

Outlook:

The company started offering the online matchmaking services in 2001 and it is one of the first companies to offer online matchmaking services in India, they have an early mover advantage among customers seeking online  matchmaking services and this has enabled them to build a large database of profiles over several years.

As of June 30, 2017, they had 140 retail centers distributed across India; in addition they had service delivery centers in 10 cities where service teams provide services.

As of June 30, 2017 the company had a database comprising 3.08 million active profiles. in fiscal 2015, fiscal 2016, fiscal 2017 and the three months ended June 30, 2016 and 2017, they had 647,000, 678,000, 702,000, 177,000 and 190,000 paid subscriptions, respectively, and their average transaction value (“ATV”) from the matchmaking services segment for the period divided by the total number of paid subscriptions for the period, was Rs 3,655, Rs 3,827, Rs 4,065, Rs 3,946 and Rs 4,242 respectively.

The company has generated total revenue of Rs 292.93 Cr, Rs 255.42 Cr and Rs  242.84 cr in the fiscal years of 2017, 2016 and 2015 respectively. In the same time they have reported profit/loss of Rs 43.78 Cr, Rs -75.05 Cr (loss) and Rs -2.9 Cr (loss) respectively. For the period of three month ended June 2017 they have generated total revenue of Rs 83.88 cr with profit of Rs 14.61 cr.

On the performance front the company has posted EPS of Rs 21.6 (post equity), at asking price PE works out to be 46x, which looks pricey, but considering the business model and improvements in their financial statements “subscribe” rating can be given for medium to long term of investment purpose.


DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014

Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more


For upcoming IPO details, dates, size, allotment status, basics, listing, bidding, subscription, form &  other related information Call us on: 011-42445800/9650901058