Broker’s call: Matrimony.com (Add)

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Target: ₹635

CMP: ₹ 562.15

We met Sushanth Pai, Chief Financial Officer, Matrimony.com (Matrimony).

Takeaways: 10–12 per cent revenue growth (volume led) is possible in the future and will be driven by new initiatives like ‘Jodii’ and the launch of a ‘serious relationship’ platform; Marriage service could breakeven on a cash-basis by Q4-FY24 and Matrimony is working on improving the product; In case there is consolidation in the matchmaking industry, Matrimony.com will be only open to be an acquirer should an opportunity present itself; and The legal disputes with Google are likely to continue in the near term, which will result in fresh provisions every quarter.

To achieve double digit growth, a lot of initiatives have been taken and they have focussed on continuous innovation.

As a market leader in the matchmaking space (over 60 per cent share), they will continue to raise the issue of high service fee in relevant forums. Maintain ADD with a TP of ₹635.

Key risks: Weaker-than-expected conversion of active profiles into paid subscriptions; slower-than-expected scale-up in marriage services; and lowerthan expected recovery in the matchmaking business.