Info Edge hits record high on healthy outlook & likely Policybazaar IPO

The company expects that in the post-COVID-19 environment there will be faster absorption of internet-based activities in the domains where it operates

Shares of Info Edge (India) hit a record high of Rs 6,566 as they rallied 6 per cent on the BSE in intra-day trade on Wednesday on a strong growth outlook. The stock surpassed its previous high of Rs 6,299.80 touched on September 2, 2021. The company is primarily engaged in providing online and offline services through its online portal Naukri.com, Jeevansathi.com, 99 acres.com, shiksha.com and offline portal Quadrangle.com.

Furthermore, PB Fintech has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”). The company offers a consumer-centric platform by partnering with financial services companies such as insurance companies to help customers select products and schemes that best suit their requirements. Info Edge has invested Rs 576 crore in PolicyBazaar in aggregate and as of March 31, 2021, held an economic interest of about 13.98 per cent in PolicyBazaar.

Info Edge expects that a gradual opening up of economies will slowly spur demand. It expects that in the post-COVID-19 environment there will be faster absorption of internet-based activities in the domains where it operates. Hence, it is preparing itself to best utilise the next wave of market opportunities as the COVID-19 crisis subsides.

“We anticipate a stronger recovery in 2022 and 2023. Info Edge has continued to invest in all elements related to product and service development and has introduced several innovative measures to strengthen the Company’s competitive positioning. It has curtailed sales-related and non-core expenditures,” Info Edge said in the financial year 2020-21 (FY21) annual report.

The company further said there are a series of investments made in diversified entities that have significant value creation potential over time. Each of these is managed independently with the Info Edge management providing broad guidance and financial support and one of such investments is Zomato.

“FY22E should see a strong rebound in revenue growth after a 14 per cent decline in FY21. Billings are expected to see a sharp pickup, which should help provide operating leverage support to margin. With the expectation of additional jobs coming in (on pent-up demand) and pressure on Real Estate developers to sell off inventory, we expect a 28 per cent revenue CAGR over FY21-23E. With the management investing prudently, some of Info Edge’s current investments should scale up in the medium-to-long term, further contributing to the group’s valuation,” Motilal Oswal Securities said in the June quarter result update.