Neutral Info Edge; target of Rs 4010: Motilal Oswal

Motilal Oswal recommended Neutral rating on Info Edge with a target price of Rs 4010 in its research report dated May 27, 2023.

Broker Research

May 29, 2023 / 13:32 IST

Neutral

26 Aug, 2025 12:21

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Motilal Oswal's research report on Info Edge

Info Edge (INFOE) delivered a healthy revenue growth in 4QFY23, with standalone revenue rising 24% YoY (in line) fueled by 27% YoY growth in the Recruitment vertical. EBITDA margin was flat QoQ at 39.1% (strong 240bp beat). Billings were healthy (up 15.3% YoY to INR7.5b) and grew ahead of our estimate, despite a slowdown in IT hiring during the quarter. Management sees clear sign of a slowdown in IT hiring that remains a key risk, given its significantly high revenue contribution from the Naukri business. However, INFOE is hopeful of a strong comeback in IT hiring once things improve in 2HFY24. Conversely, Non-IT hiring has picked up well and should offset some of the impact from slowdown in IT hiring. INFOE should report healthy growth in FY24 with strong demand in non-IT along with pickup in IT in 2HFY24. We expect it to deliver 15% revenue CAGR over FY23-25. 99acres posted a strong 4QFY23; demand is likely to remain strong with alltime low inventory, new launches and good demand for new homes. Aided by improvements made on the platform, INFOE has managed to increase traffic and enquiries while reducing marketing expenses at the same time. The marketing spends, though, remained elevated and are likely to result in continued losses for 99acres over the next few years, before it turns profitable.

Outlook

We value the company’s operating entities using DCF valuation. Our SoTPbased valuation indicates a TP of INR4,010. Reiterate Neutral.

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