IndiaMart shares gain for second straight session! Here's what experts say

Shares of IndiaMART InterMESH rose 4 per cent to hit an intraday high of Rs 4,977.85 on BSE. The stock has been gaining for the last two trading sessions.
 
On Wednesday, the company announced that it has entered into an agreement to acquire 26 per cent of the share capital (on fully diluted basis) of IB MonotaRO Private Limited (IMPL).
 
The investment "is in line with the company's strategic initiative of transitioning towards commerce enablement," IndiaMART said in its filing.
 
The company intends to invest up to Rs 104.2 crore approx. in IMPL by acquiring 8,11,250 equity shares at a price of Rs 1,284.15 per equity share from an existing shareholder through secondary purchase. The final aggregate shareholding of the company, post this acquisition, in IMPL, would be 26 per cent on a fully diluted basis.
 
The stock ended 0.73 per cent higher at Rs 4,825 against the previous close of Rs 4,789.80. Market cap of the firm rose to Rs 14,747.41 crore on BSE.
 
On Monday, it led the Series B funding round of logistics SaaS platform Fleetx Technologies Private Limited (Fleetx.io), and announced an investment of Rs 91.42 crore in the company.
 
"As part of the transaction, IndiaMART has agreed to acquire shares via a mix of primary and secondary share purchases, and its final holding post the round shall stand at 16.53 per cent." IndiaMART said in a release.
 
Abhay Agarwal, Founder, and Fund Manager, Piper Serica said, "The company has recently invested in Busy Infotech, Vyapar, Legistify, and Shipway to add to services like bookkeeping, inventory management, invoicing, and logistics solutions. Its investment in FleetX is in the same direction as FleetX is a leading SaaS-based solution provider to fleet operators. Interestingly, IndiaMart is not planning to get into the management of these young companies but will leave it to the dynamic founders."
 
"We believe that this is a good strategy and will allow IndiaMart to scale up its business faster. With 2.3 per cent paying suppliers as a percentage of total subscribers, an asset-light model, strong cash flow generation, a cash-rich balance sheet, and growing internet adaption among businesses and consumers, IndiaMart offers a multi-year growth story," Agarwal added.
 
"Indiamart, like other new-age e-commerce companies in India and worldwide, has gone through a drastic drawdown in the past few months. Even though Indimark, unlike other public e-commerce companies, is growing its profitability and is even trading at valuation multiple at par with many midcaps IT firms," Sonam Srivastava, Founder, Wright Research told Business Today.
 
"Investment in the logistic company that uses IoT and SaaS like Fleetx is a strategic call by Indiamart that should pay off in the coming future. On the price side, we expect Indiamart to be near the bottom at these valuations and hope the next earning cycle will bring back the stock's momentum," she added.