Info Edge (India) Ltd. share price target

Info Edge (India) Ltd (IEL) is amongst India's leading online classified companies, with presence in online recruitment, matrimony, real estate, and offline executive search.

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Info Edge Ltd (INFOE) delivered better-than-expected revenue in 3QFY22, with standalone revenue growth of 48% YoY (estimate of +42%). On the other hand, the EBITDA margin missed estimates due to higher ad spending in the 99acres business. 3Q billing also came in ahead of our estimate, led by a large beat in Naukri (80% YoY). The management has indicated continued strength in the Naukri business over the near term, along with the large impact of a price increase in FY22E billing. As a result, we expect INFOE's Recruitment vertical to maintain...

EBITDA grew 85.6% YoY (-3.2% QoQ), as EBITDA margin expanded 10pps YoY to 40.3% (-6pps QoQ), on lower opex. Reported PAT of Rs. 7,371cr (+2,147.1% YoY) was aided by one-off Zomato investment gains...

INFOE reported an in-line operating performance in 2QFY22, with standalone revenue growth of 37% YoY (estimate of +35%), the EBITDA margin at 30.2% (estimate of 30.1%), and APAT growth of 98% YoY (estimate of 101% YoY). 2Q billings stood at INR4.02b, +67% YoY and +28% QoQ....

Q2 revenue grew 37% YoY, outperforming consensus, with broad-based uptick across Naukri, 99acres and other verticals

Info Edge (India) Limited is engaged in online classified business. Company operates an online job portal Naukri.com, a matrimony website Jeevansathi.com, a real estate search portal 99Acres.com and an educational website Shiksha.com. Company's FY21 consolidated revenue of Rs. 1,120cr primarily comprised of Recruitment Solutions business (~71% of revenue). The segment is witnessing revival post-COVID, primarily led by hiring demand pick-up in the IT and IT enabled services sector....

As we anticipated in mid-Jun-21 (link), hiring across sectors has witnessed a robust pickup. Net EPFO additions in Jun-21 were ~85% higher than the pre-covid run-rate. RBI's Aug-21 State of the economy' report (link) hints at up to ~38% YoY salary hikes across sectors the best in 15 years. Resignations and voluntary retirements too are surging in line with global trends. Rethinking of work' by employees is driving massive supply-demand mismatch across industries further boosting the need for search' platforms like Naukri. We foresee an employees' job market for at least 12-18 months (vs employers' market for 5+ years now)....