Hold Info Edge: target of Rs 8000: ICICI Securities

ICICI Securities's research report on Info Edge

Info Edge’s recruitment business revenue grew 12.1% YoY as billings grew 15.2% YoY, mostly led by increasing number of unique customers (up ~10%YoY) in Q3FY25. We believe some of this was on account of growth from GCCs. IT segment grew 16% YoY and non-IT segment grew 17% YoY; growth in revenue from recruitment consultants was relatively muted at 9% YoY. Other businesses such as real estate (99acres), matrimonial (Jeevansathi) and education (Shiksha) continued to reduce cash burn, as expected. In our view, current valuation has already priced in these positives and further re-rating would be contingent on Info Edge delivering >20% YoY billing growth in recruitment. We think the potential impact of AI on job growth in IT and potential geopolitical instability could keep the stock range bound. Maintain HOLD.

Outlook

We maintain HOLD with a TP of INR 8,000, valuing Info Edge using the SoTP framework.