Buy Info Edge (India), target price Rs 5070: HDFC Securities

HDFC Securities has buy call on Info Edge (India) with a target price of Rs 5070. The current market price of Info Edge (India) Ltd. is Rs 4440.8. Time period given by analyst is one year when Info Edge (India) Ltd. price can reach defined target.

Info Edge (India) Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 55034.94 Crore) operating in Services sector.

Info Edge (India) Ltd. key Products/Revenue Segments include Sale of services for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 874.59 Crore, up 24.97 % from last quarter Total Income of Rs 699.86 Crore and up 130.07 % from last year same quarter Total Income of Rs 380.14 Crore. Company reported net profit after tax of Rs 356.29 Crore in latest quarter.

Investment Rationale
The brokerage expects Infoedge to post strong growth, led by recruitment/99acres/Shiksha segment and margin will expand due to non-linearity (Naukri at 59.6% EBITDA margin). It raises the estimate by 6-8% and maintain BUY with a SoTP-based TP of INR 5,070, valuing the flagship recruitment business at 45x EV/EBITDA, assigning 5x EV/sales multiple to 99acres and 3x to Jeevansathi and Shiksha, while Zomato and Policybazaar have been assigned the market value (~15% discount).

Promoter/FII Holdings
Promoters held 38.11 per cent stake in the company as of 30-Jun-2022, while FIIs owned 32.72 per cent, DIIs 16.37 per cent.