 "Stock idea: Analysts raise target price on Info Edge post Q4; details here")
Info Edge stock price: Analysts, across the board, have raised their target prices on Info Edge India stock, after the company turned back in the black in the January to March quarter (Q4) of financial year 2023-24 (Q4FY24). They have a maximum target price of Rs 7,050 on the stock, implying a gain of 20.2 per cent from Thursday's closing price.
On the bourses, Info Edge stock price zoomed 8 per cent to Rs 6,338.55 per share on the BSE in Friday's intraday trade. The stock was tradong close to its 52-week high level of Rs 6,355, hit on April 9, 2024.
By comparison, the S&P BSE Sensex was up 0.4 per cent at 12:30 PM.
Info Edge (India) stock hit a record high of Rs 7,462.95 on October 19, 2021, and an all-time low of Rs 97.50 on November 21, 2008.
Info Edge (India) Q4 2024 financial results:
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For Q4FY24, Naukri.com owner Info Edge posted a consolidated net profit of Rs 87.9 crore as against a net loss of Rs 503.1 crore in the year-ago period. Besides, the consolidated revenue of operations increased 8.7 per cent to Rs 657.42 crore during the quarter from Rs 604.78 crore a year earlier.
Ebitda, meanwhile, grew 12.1 per cent Y-o-Y to Rs 250 crore, with Ebitda margin at 40.6 per cent (up 20bps Q-o-Q).
Segment-wise, Recruitment billings grew 10.5 per cent Y-o-Y, led by increased activity in the recruitment business and the sustained strong performance of its non-recruitment verticals.
Billing growth was broad-based with IT up 11 per cent Y-o-Y, non-IT at 12 per cent Y-o-Y, and the consultant segment reporting flattish revenue. Recruitment revenue grew 3.4 per cent Y-o-Y driven by growth in the non-IT segment. The real estate segment's revenue grew 22.5 per cent Y-o-Y while billing grew 26.4 per cent Y-o-Y.
Jeevansathi revenue grew 27.7 per cent Y-o-Y as some of the monetisation initiatives showed results. Shiksha reported billings growth of 9.3 per cent Y-o-Y while revenue grew 22.3 per cent Y-o-Y in Q4FY24.
According to the management, 15 per cent Y-o-Y growth in billings for recruitment business will help them maintain margins and over 20 per cent Y-o-Y growth will help them improve it. The company saw a sustained growth in the non-IT segment, particularly in Healthcare, Infrastructure, Manufacturing, and BFSI; however, the growth in these segments could slow down with the base effect coming into play, it said.
Info Edge (India) new target prices:
Nomura | Buy | Target: Rs 6,750
Info Edge (India) showed strong billings across segments with the IT segment showing first signs of turnaround. That apart, 99acres (real estate segment), Jeevansathi.com (matrimony), and Shiksha.com (education), too, remained strong. We revise our FY25-26 earnings per share (EPS) estimate by around 0.4 per cent.
Nuvama Institutional Equities | Buy | Target: Rs 7,050
Management saw first signs of recovery in IT recruitment business as IT billing grew in double digit. Attrition at IT Services companies has further reduced in Q4 while utilisation increased further. We believe hiring by IT companies shall improve further, which shall lead to billing growth acceleration. Moreover, lower base shall support growth acceleration. We value Info Edge at Rs 7,050. We value Naukri business at Rs 3,406.
Kotak Institutional Equities | Add | Target: Rs 6,550
We assume lower losses in 99acres, noting cash generation in Q4FY24 and expectations of operating leverage. We marginally increase our FY2025-26E revenue estimates of Jeevansathi and Shiksha by 2-4 per cent. Naukri continues to be the market leader in the online recruitment space and can report stronger billings growth momentum in FY2025.
We align Zomato's FV to Rs 225/share and PB Fintech to Rs 1,290/share, leading to a revised SoTP-based fair value of Rs 6,550 (Rs 6,300 earlier).
ICICI Securities | Buy | Target: Rs 6,993
Billings growth at 10.5 per cent Y-o-Y for IT segment was a beat, and bodes well for future revenue growth. Though management refrained from calling out a recovery in IT hiring as yet, it mentioned manpower utilisation is back to pre-Covid levels. Non-IT hiring seems to have slowed down a bit given the high base. In our view, this could also be attributable to the uncertainty over elections.
99acres sustained the trajectory of reducing cash burn led by buoyant real estate sector and improving competitive environment. Jeevansathi is benefitting from improved monetisation.
We value recruitment business at 35x one-year forward EV/Ebitda multiple and real estate business at 60x one-year forward EV/Ebitda multiple, given a much higher growth trajectory.