Info Edge share price over 1 percent slipped in early trade on June 22 a day after the company posted its March quarter earnings.
The company has posted a 60.3 percent jump in its Q4 net profit at Rs 66.7 crore versus Rs 41.6 crore in the year-ago. Revenue was down 10.2 percent to Rs 290 crore versus 322.8 in Q4 FY20.
Earnings before interest, tax, depreciation and amortization (EBITDA) was down 44.9 percent to Rs 53.1 crore and EBITDA margin was down at 18.3 percent from the year-ago quarter.
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Here is what brokerages have to say about the stock and the company after the March quarter earnings:
Goldman Sachs | Rating: Sell | Target: Rs 2,760
The broking house raised FY22-24 revenue estimates by up to 4 percent citing a strong outlook for recruitment business.
"The company is well placed to capture upside from B2B spends in India moving to digital, but we a mismatch between growth outlook & valuations. The company trades at 88x 12m-forward EV/EBITDA versus global classifieds median of 24x," it said.
Macquarie | Rating: Underperform | Target: Rs 4,220
The sequential improvement in core business continued. The cash balances pile up with the company as it is evaluating investment opportunities. FY22-23 EPS estimates see a revision of less than 1 percent.
CLSA | Rating: Outperform | Target: Cut to Rs 5,470
CLSA expect revenue growth to bounce back sharply by Q2. The operating leverage in the business model should ensure its flow-through into the margin. Zomato & Policybazaar are actively working on public listing. The management remains on the lookout for consolidation or expansion.
Sharekhan | Rating: Buy | Target: Rs 6,100
Sharekhan fine-tuned its estimates for FY2022E/FY2023E, factoring in strong billings growth across segments and minimal impact on recruitment business in the second wave of COVID-19. It expects revenue and margins to improve sharply in subsequent years, led by improving economic activity, rise in recruitment across sectors, strong recovery in 99acres.com business, and continued growth momentum in Jeevansathi and Shiksha businesses.
Motilal Oswal | Rating: Neutral | Target: Rs 4,590
With the management investing prudently, some of Info Edge’s current investments would scale up in the medium to long term, further contributing to the group’s valuation.
ICICI Direct | Rating: Buy | Target: Raise to Rs 5,740 from Rs 5,725
Broking house believes Info Edge will be a key beneficiary of a shift of advertising on the online medium. In addition, digital on-boarding of talent and strong traction in the IT& ITeS segment bodes well for revenue growth.
Further, the company is witnessing a healthy billing trend on a QoQ and YoY basis. The brokerage expects Info Edge to witness improved traction post the Covid second wave.
"In addition, prudent capital allocation, quasi-play on the Indian startup ecosystem (Zomato, PolicyBazaar, like Shoekonect, Ustra, Gramophone) and leadership in recruitment with an EBITDA margin of above 50 percent keeps us optimistic on the stock from a long term perspective," it said.
At 09:16 hrs, Info Edge India was quoting at Rs 4,927.80, down Rs 50.20, or 1.01 percent on the BSE.
The share touched a 52-week high of Rs 5,876.05 and a 52-week low of Rs 2,664.35 on 06 January 2021 and 25 June 2020, respectively.
Currently, it is trading 16.14 percent below its 52-week high and 84.95 percent above its 52-week low.Disclaimer
: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.