Shares of Info Edge (India) Ltd slipped nearly 10% today after the firm reported a loss Rs 116.5 crore for the third quarter ended December 2022 against a net profit of Rs 4,601.8 crore in the corresponding quarter of the previous fiscal. Info Edge stock fell up to 9.73% to Rs 3440.3 against the previous close of Rs 3,811 on BSE. Info Edge shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The large cap stock has fallen 24.62% in one year and lost 12.06% since the beginning of this year. Total 0.25 lakh shares changed hands amounting to turnover of Rs 8.81 crore. Market cap of the firm fell to Rs 44,619 crore.
The stock hit a 52-week high of Rs 4912.90 on April 11, 2022 and a 52-week low of Rs 3314 on May 26, 2022.
The company said owing to concerns around the uncertainty of the funding environment for 4B Network, an impairment of Rs 276 crore has been charged as an exceptional item.
Revenue from operations rose 39.9 per cent to Rs 589.5 crore in Q3 against Rs 421.4 crore in the corresponding period of the preceding fiscal.
At the operating level, EBITDA climbed 61.3 percent to Rs 188.4 crore in the third quarter of this fiscal over Rs 116.8 crore in the corresponding period in the previous fiscal.
EBITDA margin stood at 32 percent in the reporting quarter compared to 27.7 percent in the corresponding period in the previous fiscal. EBITDA refers to earnings before interest, tax, depreciation, and amortisation.
However, YES Securities sees an upside of 37% to Rs 5215 against the market price of Rs 3,814 post Q3 earnings.
The brokerage said, “The shift in market share towards organized players would also support growth trajectory of the company. We estimate revenue CAGR of 28.8% over FY22-24E with average EBITDA margin of 35.1% over the period. We maintain our BUY rating on the stock with revised target price of Rs 5,215/share based on DCF methodology. The stock trades at P/E of 65.1x/55.6x on FY23E/FY24E on standalone basis.”
Motilal Oswal said Info Edge logged a strong revenue growth of 33 per cent YoY, led by 40 per cent growth in the recruitment vertical. EBITDA margin, it said, rose 450 bps QoQ to 39.1 per cent on account of lower employee costs, advertisement spends, and other expenses (Strong beat). Billings remained strong, up 14.5 per cent, and grew ahead of Motilal’s estimates, despite a slowdown in IT hiring.
“Though near-term growth in Recruitment is expected to be adversely impacted by lower IT demand, good medium-term growth in Recruitment should help the company deliver 16 per cent revenue CAGR over FY23-25. With the management investing prudently, some of its current investments should scale up over the medium-to-long term, further contributing to the group’s valuation,” the financial services firm said while suggesting a target of Rs 3,800.
Info Edge (India) Ltd. is one of India’s premier internet based business. The company is engaged in the business of operating multiple internet based services through its various web portals and mobile applications. It currently operates in four service verticals such as in recruitment solutions through its brands naukri.com iimjobs.com hirist.com ambitionbox.com bigshyft.com jobhai.com; in real estate services through its brand 99acres.com; in matrimonial services through its brand jeevansaathi.com and in education services through its brand shiksha.com.
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