Info Edge hits new high, surges 26% in 9 days

Since May 25, in past nine trading sessions, the stock rallied 26% against 3% rise in Sensex.

Info Edge (India) hit a new high of Rs 1,060, up 12% on the BSE in intra-day trade, extending its past eight days of rally after the company reported a good set of numbers for the quarter ended March 2017 (Q4FY17).

Info Edge (India) runs online businesses like job portal Naukri, realty site 99acres and matrimonial platform Jeevansathi.

Since May 25, in past nine trading sessions, the stock rallied 26% as compared to 3% rise in the S&P BSE Sensex.

The company’s Ebitda (earnings before interest, tax, depreciation and amortization) margin improved 753 bps to 38% in Q4FY17 mainly on account of higher-than-expected revenue growth and lower network & internet cost.

“Info Edge’s leadership position in the recruitment solutions business and turning profitability of its non-recruitment business, if it continues, could drive growth, going ahead. However, near term uncertainty in 99 acres could impact its business for a quarter or two,” analysts ICICI Securities said in result update.

Although the revenues during H2FY17 were impacted due to demonetization and change in sales & incentives policy, the outlook for FH18 looks encouraging, as revenues from couple of high value accounts got deferred into Q1 and Q2 FY18 which should drive growth up the recruitment solutions business, according to analysts at Spark Capital.

At 03:18 pm; the stock was up 11% at Rs 1,050 on BSE, as compared to 0.35% decline in the Sensex. The trading volumes on the counter more than doubled with a combined 595,266 shares changed hands on BSE and NSE so far.