Info Edge shares gained 4 percent intraday to hit a record high of Rs 2,050 on May 29 after the company reported good growth in operating income for March quarter.
The stock has rallied 67 percent in the last one year. At 1234 hours today, it was quoting at Rs 1,979.65, up Rs 13.90, or 0.71 percent on the BSE.
CLSA which has a buy call on the stock said it rolled forward its SOTP multiples to FY22 and cut EV/sales multiple for 99acres to 8x and Zomato to 5x, driving up target price from Rs 2,070 to Rs 2,400.
The brokerage further said Naukri's billing growth accelerated to 20 percent YoY due to greater IT hiring and 99acres’ revenue growth remained stellar, at 46 percent YoY, even as billing growth moderated to 20 percent YoY.
Zomato’s FY19 growth accelerated to over 200 percent, supported by explosive growth in its delivery business. Hence, CLSA lifted its Zomato revenue estimates 40-43 percent.
The online classifieds company's profit fell by 10.8 percent sequentially to Rs 66.3 crore due to one-time loss of Rs 17.4 crore related impairment of investments during the quarter ended March 2019, but revenue from operations increased 4.1 percent to Rs 292.6 crore QoQ.
Its earnings before interest, tax, depreciation and amortisation grew 9.6 percent quarter-on-quarter to Rs 91.2 crore and margin expanded 160 bps to 31.2 percent in Q4.
Meanwhile, the company announced the acquisition of iimjobs.com for Rs 80.8 crore, which will help Naukri penetrate into high skilled recruitment segments against its current strong presence around fresher/mid-level hiring.
The acquisition is likely to be completed before June 30, 2019. iimjobs.com has a turnover of Rs 16.6 crore as of FY19 and it has grown at 27 percent CAGR over the last two years.
Global brokerage Jefferies, which has a hold rating on the stock with a target price at Rs 1,715 as Q4 revenue was largely in-line across key businesses and EBITDA was 4 percent ahead of estimate helped by lower losses in Jeevansathi.
Management guided for continued investments across businesses.Disclaimer
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