There is a huge potential for the expansion of the Internet in India right now. Being a huge market base, India has been the center of attraction for all. This is the reason why brokerage and research firm HDFC Securities is very excited about some of the Internet stocks listed on the stock exchange. According to the brokerage firm, listed stocks in India have seen improvement but valuations remain high.
Brokerage firm HDFC Securities is giving preference to the shares of India Mart with a target price of Rs 7000. Let us tell you, the shares of IndiaMart InterMesh LTD have declined by 32% so far in 2022 (YTD). However, the company has recently made investments in Busy Infotech, Vyapar, Shipway and Legitify.
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According to HDFC Securities, ‘The valuation of India’s internet sector points to a premium of around 3x compared to the global valuation.’ India’s internet ecosystem shows growth. Many services have gone online, be it payments or work from home culture.
Internet in India is getting cheaper with faster speed. Most of the companies did the prices a few months back, but after that there was not much change in the number of users. Screen time has increased because of cheap internet. Also, the boom of online payment systems has completely changed the ecosystem of startups in India.