Info Edge share price: Buy Info Edge (India), target price Rs 8040: ICICI Securities

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Did you Know? Stock score of Info Edge (India) Ltd moved up by 3 in 3 months on a 10-point scale. View Latest Stock Report »

ICICI Securities has buy call on(India) with a target price of Rs 8040. The current market price of Info Edge (India) Ltd. is Rs 6530.5. 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 79636.88 Crore) operating in Services sector.Info Edge (India) Ltd. key Products/Revenue Segments include Sale of services for the year ending 31-Mar-2021.For the quarter ended 30-06-2021, the company has reported a Consolidated Total Income of Rs 380.14 Crore, up 5.79 % from last quarter Total Income of Rs 359.33 Crore and up 23.07 % from last year same quarter Total Income of Rs 308.89 Crore. Company reported net profit after tax of Rs 251.30 Crore in latest quarter.The brokerage expects a sharp pent-up increase in Jeevansathi’s paid listings as wedding restrictions ease and most of the ~17mn deferred weddings (I-Sec est., CY20 & CY21) come into planning pipeline. The robust volume spike at 99 Acres / Jeevansathi should come along with EBITDA profitability surprising the street. Post the upgrade in mid Jun-21, the stock was up ~29% (vs ~10% return in NIFTY ). Given the improved growth and margin outlook across segments, it upgrades FY22E - FY24E EBIT by 23%-35% and TP by 28%. It values Naukri at 75x FY23E EPS.Promoters held 38.4 per cent stake in the company as of June 30, 2021, while FIIs held 38 per cent, DIIs 13 per cent and public and other 10.6 per cent.

Here is why Naukri parent Info Edge’s stock went up 23% in the last one month

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Shares of Info Edge (India) Limited reached ₹6,692 at 11:56 a.m. on September 8.

(India) Limited reached ₹6,692 at 11:56 a.m. on September 8. The development coincides with ICICI Securities issuing a buy call on Info Edge (India) with a target price of ₹8,040.

The analyst expects increase in hiring, real estate rentals and wedding trends to fill Info Edge’s pockets in the near term.

Info Edge shares

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Sanjeev Bikhchandani-led Info Edge’s shares reached ₹6,692 at 11:56 a.m. This represents an increase of ₹509 in value compared to the previous close of ₹6,183 on September 7.Over the last one month, Info Edge’s share price has increased by 23%. Each share was valued at ₹5,368 on August 9 compared to ₹6,692 at 11:56 a.m.The development comes as ICICI Securities has issued a buy call on Info Edge (India) with a target price of ₹8,040 today. The analyst expects the share to reach the target price in a span of one year.The analyst had issued a similar buy call in June with a target price of ₹6,300. ICICI Securities have now revised the target ashave crossed the said target.In its latest report on Info Edge, ICICI Securities has elaborated on the strong points that would lead the company’s stock price to increase.The broking house has also revised the estimated valuations of Info Edge and its subsidiaries. “We value Naukri at 75x [times] financial year 2023 estimates earnings per share. We value 99 Acres and Jeevansathi [Info Edge’s subsidiaries] each at 20x FY 2023 estimated sales. As elaborated in our report, our 1-year forward valuation of Zomato [a portfolio company of Info Edge] stands at $22 billion.”Meanwhile, Info Edge’s portfolio companies — Zomato and Info Edge — are also moving away from the ‘startup’ tag to a maturity stage. Zomato has already hit the public market and bought over ₹15,000 crore in return for Info Edge, PolicyBazaar has filed preliminary papers to go public soon.Further Info Edge invested in another initial public offering (IPO) -bound company ixigo in July.Trends in other markets like the US, which publish job market data periodically, hint towards a significant demand-supply mismatch when it comes to hiring. In India, entrepreneurship, preference to work in startups and flexibility of workplace are going to be biggest drivers of this demand-supply mismatch in hiring, as per ICICI Securities. This is likely to benefit job search platforms like Naukri.com for the next 12-18 months.ICICI Securities in its latest report noted that several new trends have emerged in the proptech segment — low interest rate, strong pipeline, print to online shift in advertising, recent direct-to-customer (D2C) approach taken by builders to drive traction in online real estate classifieds.The brokerage firm predicted the spike in paid listing going ahead, which will enable Info Edge-owned 99acre.com’s EBITDA [earnings before interest, taxes, depreciation, and amortisation] profitability to exceed the street estimates.ICICI Securities, however, also noted that competitive intensity is one of the key reasons for the suboptimal profitability in this segment for Info Edge. Besides this, the decline of funding in the real estate segment is also pushing Info Edge’s competition to reduce cash burn. “Nevertheless, the full stack aspirations of competitors like Square Yards is a key risk to watch out for,” the report added.Easing of lockdown restrictions and best-in-a-decade job security will encourage more people to look for their partners on matchmaking platforms. ICICI Securities is anticipating a sharp increase in paid listings in the near term to also drive EBITDA profitability, in FY23. This will be a surprise to the current street expectation, the ICICI Securities added.

Info Edge shares jump 9%; ICICI Securities ups target price by 28%

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Shares of naukri.com owner, Info Edge India, jumped nearly nine percent intraday and were the best performers on Nifty 200 and Nifty 500 indices on Wednesday. The scrip hit an all-time high at Rs 6,715.05 on the BSE.

The stock has zoomed over 308% in three years and is currently trading higher than its 5-day, 20-day, 50-day, 100-day and 200-day moving averages hinting at the bullish sentiment for the stock.

ICICI Securities has upgraded its target price on Zomato stakeholder, Info Edge, by 28% to Rs 8,050 owing to a better outlook.

“Given the improved growth and margin outlook across segments, we upgrade our FY22E-FY24E EBIT estimates by 23%-35%,” said the brokerage firm in a report.

Info Edge houses various portals including naukri.com, 99acres, shiksha, jeevansathi.com and quadrangle.

The brokerage firm expects strong traction in online realty led by low-interest rates and new launches along with a sharp pent-up increase in Jeevansathi’s paid listings as wedding restrictions ease and most of the deferred weddings come into the planning pipeline.

“The robust volume spike at 99 Acres/Jeevansathi should come along with EBITDA profitability surprising the street,” the brokerage firm added.

Given India Inc had been under-investing in hiring in the past five years, ICICI Securities foresees an employees’ market for at least 12-18 months with search platforms like Naukri benefitting.

At 1324 IST, shares of Info Edge were 7.5 percent higher at Rs 6,647.

“We have had Info Edge in some of our advisory portfolios in fairly large quantities for the last couple of years. The fact that naukri.com is such a powerful cash machine, and Sanjeev Bikhchandani and Hitesh Oberoi have done a superb job in taking naukri.com’s superb cash flows and reinvesting it in franchises like Zomato, Policy Bazaar, and so on,” said Saurabh Mukherjea, Founder, Marcellus Investment Managers.

“So Info Edge, we had in our portfolio, we think it’s a high-class company and we hope to be invested in it for a long time to come,” Mukherjea added.

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