Shares of Naukri.com’s parent Info Edge (India) Ltd. gained in the morning deals on February 6, as the brokerages remained bullish on the firm after its Q3 earnings show.
For the third quarter of the financial year 2024-25 (Q3FY25), Info Edge (India)’s net profit was up over 20 percent to Rs 263 crore from Rs 219 crore in the same quarter last year. Revenue from recruitment services rose over 12 percent to Rs 505 crore, with the IT segment growing by 16 percent.
Recruitment billings were up 15 percent on-year Q3FY25, driven by a recovery in both IT and non-IT segments. Nomura Holdings expects billing growth of 20 percent on-year for FY26. However, while maintaining its 'buy' call, the brokerage revised its target price on the firm downwards to Rs 8,510, as a result of the firm's investment in food delivery player Zomato. Nomura had recently slashed its fair value assumption on Zomato shares.
On the other hand, Nuvama Institutional Equities hiked its target price on Info Edge (India) shares to Rs 9,100 apiece, while keeping its 'buy' call intact. "Info Edge (India) continued to deliver a strong quarter on all counts. Billing growth continues to report an improving growth trajectory with revenue growth catching up. Margins have improved across businesses," noted the brokerage.
At 9.19 am, shares of the firm were quoting Rs 8,148.15, higher by 2.6 percent on the NSE.
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The board of Info Edge also approved a stock split in the ratio of 1:5, the company informed through an exchange filing on February 5.
Further, the company also announced it will enter a contribution agreement with the IE Venture Investment Fund III, a scheme to be launched by Karkardooma Trust.
Info Edge (India) will give to Rs 1,000 crore to the fund, once it receives approval from SEBI and the shareholders of Info Edge. IE Venture Investment Fund III, a category II alternative investment fund (AIF) under SEBI rules, is in the process of securing its AIF registration certificate. Managed and sponsored by Smartweb Internet Services Ltd, a fully owned subsidiary of Info Edge, the fund will invest in emerging businesses.
Since Smartweb serves as both sponsor and investment manager, the deal is considered a related party transaction. Under SEBI regulations, Info Edge shareholders must approve this material transaction. The company’s promoters have no personal stake in the investment, and the deal follows an arm’s length structure.
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