Info Edge: Most interesting story in Indian stock mkt

Investment Advisor, PN Vijay believes that Info Edge is one of the most interesting new wave stories in the Indian stock market. He would hold on to the stock even after this strong listing.

Excerpts from CNBC-TV18's exclusive interview with PN Vijay:

Q: Info Edge, where do you see it listing and what do you think of the business?

A: That’s a very interesting business model; they have several franchises, which have strong brand names and well known in the market. So it should get a good listing because of the story value. These type of new wave industries at some point in time put valuation like we have seen in multiplexes and those type of things. But right now with the type of franchises that they have in the Internet space, they will get a good listing.  

Q: What would you do with Info Edge right now, Rs 320 was the issue price, stock at Rs 570 already, where does it go from here?

A: There is no need to sell Info Edge in a panic or in a spirit of greed. It’s got a great concept and got business models, which some of them are at least revenue positive. I would hold on to Info Edge even after this strong listing.     

Q: What about the very many who did not get a part of that. At more than Rs 550 would you go out and buy Info Edge?

A: Well that’s more for the technical analyst to say because it depends on investor’s psychology the first few days after listing. My sense here is that a lot of punters have invested in this stock and they would sell out, lot of bank leverage positions may also be there. So you may see it falling about 4-5%, once the euphoria is over that maybe a good time to time a reentry.   

Q: What did you make of what the management of Info Edge spoke?

A: I think management is understandably positive; they have created markets, naukri.com and they are doing well in matrimonial space and most importantly real estate space, which is a huge, uncapped area.

Middle class, who are very Internet savvy, use it. But there is a word of caution when people are buying growth at such huge volumes but having said that Info Edge is one of the most interesting new wave stories in the Indian stock market.