 "Info Edge (India) rallies 10% post Q1 results; stock hits new high")
Info Edge (India) has moved higher to its record high of Rs 1,492, rising 10% and extending its 8% rally on the BSE in the past two days, after the company reported a standalone net profit of Rs 630 million in June quarter (Q1FY19). The profit included Rs 160 million relating to the diminution in the carrying value of Canvera. The company posted profit of Rs 642 million in year ago quarter.
The stock surpassed its previous high of Rs 1,458 touched on January 22, 2018 on the BSE in intra-day trade.
The company’s standalone Q1FY19 revenue increased 17% year on year (YoY) to Rs 2.6 billion, driven by growth of 15% YoY in Naukri, 34% YoY in 99acres and 7% YoY in other businesses.
EBITDA (earnings before interest, taxes, depreciation and amortization) margin expanded 90bps YoY to 32.5% in Q1FY19.
Info Edge (India) is primarily in the business of internet based service delivery operating in four service verticals through various web portals In respective verticals namely recruitment solutions comprising primarily naukri.com, other recruitment related portals and ancillary services related to recruitment, 99acres.com for real estate related services, Jeevansathi.com for matrimony related services and Shiksha.com for education related services.
“Both Naukri and 99acres have been seeing stronger growth since last quarter, while the outlook for Recruitment has also improved (on the back of a pick-up in IT hiring) and Real Estate is coming off its worse,” analysts at Motilal Oswal Securities said in result update.
“We expect Info Edge to leverage any growth opportunity on offer from macro tailwinds in recruitment and real estate segments. We see Naukri.com (pick-up in economic growth), 99acres.com (lower competitive intensity) and Zomato.com (multi-faceted growth) as the key drivers of valuation at Info Edge,” it added. The brokerage firm maintains ‘buy’ rating on the stock with a 12 month target price of Rs 1,550.
The stock surpassed its previous high of Rs 1,458 touched on January 22, 2018 on the BSE in intra-day trade.
The company’s standalone Q1FY19 revenue increased 17% year on year (YoY) to Rs 2.6 billion, driven by growth of 15% YoY in Naukri, 34% YoY in 99acres and 7% YoY in other businesses.
EBITDA (earnings before interest, taxes, depreciation and amortization) margin expanded 90bps YoY to 32.5% in Q1FY19.
Info Edge (India) is primarily in the business of internet based service delivery operating in four service verticals through various web portals In respective verticals namely recruitment solutions comprising primarily naukri.com, other recruitment related portals and ancillary services related to recruitment, 99acres.com for real estate related services, Jeevansathi.com for matrimony related services and Shiksha.com for education related services.
“Both Naukri and 99acres have been seeing stronger growth since last quarter, while the outlook for Recruitment has also improved (on the back of a pick-up in IT hiring) and Real Estate is coming off its worse,” analysts at Motilal Oswal Securities said in result update.
“We expect Info Edge to leverage any growth opportunity on offer from macro tailwinds in recruitment and real estate segments. We see Naukri.com (pick-up in economic growth), 99acres.com (lower competitive intensity) and Zomato.com (multi-faceted growth) as the key drivers of valuation at Info Edge,” it added. The brokerage firm maintains ‘buy’ rating on the stock with a 12 month target price of Rs 1,550.
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