has buy call on Info Edge (India) with a target price of Rs 5420. The current market price of (India) Ltd. is Rs 3830.4.

Info Edge (India) Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 49542.80 Crore) operating in Services sector.

Info Edge (India) Ltd. key Products/Revenue Segments include Sale of services for the year ending 31-Mar-2022.

Financials

For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 874.59 Crore, up 24.97 % from last quarter Total Income of Rs 699.86 Crore and up 130.07 % from last year same quarter Total Income of Rs 380.14 Crore. Company reported net profit after tax of Rs 356.29 Crore in latest quarter.

Investment Rationale
The brokerage expects Info Edge to report a healthy billings growth of ~21% YoY in 2QFY23, sequentially it would see a sharp moderation from 62% YoY in 1Q. While Recruitment (Naukri) business billings growth is likely to moderate to 30% YoY (from c.65% YoY last quarter) due to a relatively tough base, it expects c.5% decline in 99acres business billings on account of high base and Jeevansathi strategy changes, respectively. Robust built up of deferred revenue across all key segments however would ensure limited sequential moderation in standalone business revenue growth to 43% YoY in 2Q from ~55% YoY in 1Q. While we expect standalone business margins to remain flat YoY at 30.6%, sequentially there could be a correction of c.150bps due to very high competitive intensity in 99acres and Jeevansathi. The brokerage forecasts Revenue/EBITDA/Adj. EPS CAGR of 22%/26%/18% in stand. business over FY22-25E, a major proportion of growth being frontloaded to FY23.

Promoter/FII Holdings
Promoters held 38.11 per cent stake in the company as of 30-Jun-2022, while FIIs owned 32.72 per cent, DIIs 16.37 per cent.

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By Dipak

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