May 31, 2023

Sharekhan is bullish on Info Edge (India) has recommended buy rating on the stock with a target price of Rs 4876 in its research report dated May 29, 2023. Broker Research Buy Info Edge delivered a decent performance with standalone revenue at Rs. 564 crore, up 23.8% y-o-y /1.6% q-o-q, in line with our estimates of Rs. 564.3 crore led by growth in revenues across recruitment solutions and 99acres.com. EBITDA margins improved 1,100 bps y-o-y but was flattish q-o-q at 39.1% in Q4FY23, beating our estimates by ~190 bps led by a decline in advertising & promotion costs, but was offset by higher other expenses, employee costs and network and direct charges. The management indicated that non-IT hiring is solid, and that the company is working on fine-tuning products across non- IT as they expect to see softness continue in IT hiring for couple of quarters. The company has made changes to the 99acres platform, which is evident from the strong billing growth in the segment in Q4FY23. Outlook We maintain a Buy on Info Edge with a revised SOTP based PT of Rs. 4,876 (the increase in PT reflects rollover of valuation multiple to FY25E earnings) given the strong traction in non-IT hiring, growth momentum across 99acres.com and Shiksha.com and trimming of losses across other investments. At the CMP, the stock trades at 68.7x/58.3x FY24E/FY25E EPS and 57.6x/48.8x FY24E/FY25E EV/EBITDA.