We recommend HOLD a rating on the stock

we maintain our HOLD rating on the stock

Info Edge (INFOE)’s standalone revenue stood at INR7.4b, up 15.3% YoY/ 7.2% QoQ, in line with our estimate of ~INR7.4b. EBITDA margin came in at 37.7% flat QoQ/down130bp YoY), below our estimate of 40.7%.

Eternal Limited is poised for long-term growth and improved profitability, driven by its strong market position and growth prospects in the quick commerce business (QCB). The company's focus on inventory ownership and margin improvement is expected to drive profitability. Although the industry outlook remains competitive, the company's strategy and long-term growth objectives, along with its strong management team, are expected to drive future growth. However, the stock's significant run-up in price and rich valuations limit the upside potential from current...

We believe competitive intensity is likely to see near-term volatility. Hence, we maintain our HOLD rating on the stock.

We resume our coverage with a HOLD rating on the stock.

Management dialled up ad spends, targeting buyers on the platform. This led to ~7% YoY increase in traffic and ~17% YoY growth in unique business enquiries.

We believe near-term profitability is likely to impact margins owing to increased competition. Hence, we downgrade the stock to HOLD.

Info Edge’s recruitment business revenue grew 12.1% YoY as billings grew 15.2% YoY, mostly led by increasing number of unique customers (up ~10%YoY) in Q3FY25.

Info Edge (INFOE) delivered in-line revenue growth in 3QFY25, with standalone revenue rising 12.8% YoY/2.4% QoQ. EBITDA margin came in at 43.1% (up 130bp QoQ/270bp YoY), beating our estimate of 40.6%.

Swiggy delivered a revenue of INR39.9b in 3QFY25 (up 11% QoQ) vs. our estimate of INR38.9b. The food delivery (FD) business’s GOV grew 19.2% YoY, whereas the contribution margin was 7.4%, recording 80bp QoQ expansion.

Nykaa grew BPC GMV 30% YoY in Q4FY24 aided by ‘Pink Love Sale’. As a result, BPC gross margin declined by 150bps YoY.

Cost-control initiatives yielded a 130bps YoY contribution margin (CM) improvement in BPC despite a 60bps YoY gross margin decline as :1) ad-income from D2C brands was soft as brands increased profit focus (in-line with our expectations), 2) a new ad platform resulted in transition challenges for smaller brands and 3) channel mix worsened.