Info Edge shares rally 6% even as PAT slides 59% YoY to Rs 86 crore. Brokerages remain positive

Shares of Naukri.com-operator Info Edge on Monday rose 6% to their day’s high of Rs 8,099 on the BSE after the company reported a 59% year-on-year (YoY) drop in its standalone net profit to Rs 86 crore for the quarter ended September 2024, compared with Rs 208 crore in the last-year period.

Revenue from operations recorded 11% growth at Rs 656 crore for the quarter under review as against Rs 593 crore in the corresponding quarter of the previous fiscal.

Billings for the company on a standalone basis for the quarter grew by 14.3% year on year and stood at Rs 650.3 crore.


Post the Q2 earnings announcement, should you invest in the stock? Here’s what analysts say:

Nomura: Buy| Target price: Rs 8,360
Nomura has maintained a buy rating on InfoEdge and hiked the target price to Rs 8,630 from Rs 8,280.

The company’s pickup in core recruitment has continued. The real estate segment continued a stable billing growth while the other verticals, matrimony and education continue to grow. Moat was intact and Nomura reiterated the stock as its top pick in India's internet space.

Nuvama: Buy| Target price: Rs 8,800
Nuvama retained its buy rating on the stock and raised the target price to Rs 8,800 from an earlier Rs 8,300.

Info Edge has delivered a strong quarter on all counts. Billing growth is likely to improve further as IT Services hiring is picking up while utilisation remains high and attrition is tracking below the historical average. Nuvama has tweaked up its FY25E/26E/27E EPS by +1.5%/+3.5%/3.5%.

ICICI Securities: Hold| Target price: Rs 8,000
ICICI Securities maintained its hold rating on the stock with a target price of Rs 8,000, up from Rs 7,275 previously.

Management reiterated that hiring sentiment in IT continues to improve, while non-IT remains strong. Additionally, Jeevansathi has continued its profitability improvement journey and a breakeven is expected by Q3FY25. Management also highlighted how investments in AI are helping them improve product offerings and is contributing to productivity improvement of 10-20%. Over the last couple of months, there has been an unwinding of holding company discounts for public investments.

JM Financial: Buy| Target price: Rs 8,150
JM Financial maintained its buy call on the stock while hiking the target price to Rs 8,150 from Rs 7,950.

JM Financial sees further scope for growth acceleration in 2H basis strong Jobspeak trends, high utilisation rates in IT, new client additions in GCC and non-IT sectors, and robust traction for adjacent businesses (iimjobs, Naukri Gulf and Naukri Fast Forward). Billings' growth uptick in turn should support margin expansion. Jeevansathi billings (+31.5% YoY in 2Q) too are expected to remain robust in the near term as new monetisation initiatives are gaining traction. Its margins are also now very close to break-even

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)