Sharekhan has given Buy recommendation for Info Edge (India) with a target price of Rs. 5370 in its research report issued on Aug 17, 2022

Sharekhan’s research report on Info Edge (India)

Info Edge reported yet another strong quarter with stronger-than-expected standalone revenue growth of 59% y-o-y to Rs. 508 crore and 400 bps q-o-q improvement in EBITDA margin supported by lower ad-spends. Robust revenue growth reflects strong traction in billings, up 62% y-o-y, led by 65% y-o-y growth in recruitment and 173% y-o-y growth in 99acres. Naukri’s EBITDA margin remained strong at 59.6%, up 396 bps y-o-y. The company is seeing strong traction in non-IT recruitment and expects strong billing trend to continue, although hiring from the IT sector has slightly slowed. Good business momentum for 99acres led by improving real estate demand; however, promotional expense to rise so as to maintain market share.

Outlook

We retain Buy on Info Edge with a revised PT of Rs. 5,370, given strong earnings visibility at Naukri and sector tailwind in real-estate and its leadership position in certain segments. Revenue/PAT is likely to report a CAGR of 21%/30% over FY2022-FY2024E.

Leave a Reply

Your email address will not be published.