Buy Info Edge India; target of Rs 371: Firstcall Research

Firstcall Research is bullish on Info Edge India and has recommended buy rating on the stock with a target of Rs 371 in its January 22, 2013 research report.
 
“Info Edge (India) Ltd was incorporated on May 1, 1995 under the Companies Act, 1956 as Info Edge (India) Private Ltd & converted into a Public Limited on April 27, 2006.It is one of India’s premier on-line classifieds company in recruitment, matrimony, real estate, education and related services. Company has a network of 67 offices spread across in 41 cities in India. Company also operates internationally through 2 offices in Dubai, 1 in Bahrain and 1 in Riyadh. These international offices are engaged in business of sales, marketing and payment collection activities of company’s business division. The company has employee strength of 1,798 people. Info Edge (India) owns four subsidiaries namely Naukri Internet Services, Jeevansathi Internet Services, Info Edge (India) Mauritius and Allcheckdeals India.”
 
“Info Edge India Ltd is one of India’s premier on-line classifieds company in recruitment, matrimony, real estate, education and related services, reported its financial results for the quarter ended 31st Dec, 2012. The Third quarter witnesses a healthy increase in overall sales as well as profitability of the company. The company’s net profit jumps to Rs. 307.86 million against Rs. 288.54 million in the corresponding quarter ending of previous year, an increase of 6.70%. Revenue for the quarter rose 15.67% to Rs. 1064.05 million from Rs. 919.94 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.2.82 a share during the quarter, registering 46.65% decrease over previous year period. Profit before interest, depreciation and tax is Rs. 465.22 millions as against Rs. 429.16 millions in the corresponding period of the previous year.”
 
“At the current market price of Rs.331.00, the stock P/E ratio is at 26.90 x FY13E and 23.69 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.12.31 and Rs.13.97 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 19% and 22% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 16.67 x for FY13E and 14.43 x for FY14E. Price to Book Value of the stock is expected to be at 4.73 x and 3.95 x respectively for FY13E and FY14E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 3710 for medium to long term investment. The other businesses are gaining traction is primary revenue generator is still the online recruitment classifieds and related services through naukri.com. The improvements in the Indian economy and hiring picking up, recruitment solutions had a good year in 2011-12. The investee companies are still developing the business models and will gain some visibility on future prospects in the next 2 to 3 years,” says Firstcall Research report.

Institutional holding more than 40% in Indian cos

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