Sharekhan has given Buy recommendation for Info Edge (India) with a target price of Rs. 6500 in its research report issued on Jan 31, 2022

Sharekhan’s research report on Info Edge (India)

Strong in-line revenue, but margins lagged estimates; billings growth remained strong in recruitment and Shiksha.com. Overall billings growth is likely to remain healthy in Q4FY22 despite challenges from the Omicron variant. Recovery in hiring activity in non-IT markets, higher attrition and new hiring in IT industry are expected to drive the revenue growth of its recruitment business in the medium-term. Favourable macroeconomic factors would drive 99acres.com growth in near-to-medium term. We continue to prefer Info Edge considering its dominant market positioning in recruitment and real estate classifieds space, track record of identifying scalable businesses early and strong balance sheet. We expect revenue/EPS to report a CAGR of 21%/29% over FY22-FY24E.

Outlook

We retain a Buy on Info Edge with a revised PT of Rs. 6,500, given buoyancy in the job market, a pick-up in real-estate activity and prudent investment strategies.

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