Shares of Info Edge surged by 7.8 percent, reaching a 52-week high of Rs 6,164.45 on the National Stock Exchange (NSE) following the announcement of robust Q4 performance by the parent company of the renowned online job portal Naukri.
In FY24, Info Edge’s standalone billings experienced a notable growth of 5.48 percent year-on-year (YoY), amounting to Rs 2,495.9 crore. Within its diversified segments, the recruitment solution segment, encompassing Naukri and iimjobs, demonstrated resilience with standalone billings totaling Rs 1,883.2 crore, marking a YoY increase of 1.81 percent.
A regulatory filing by Info Edge disclosed that the financial information for the quarter and year ended March 31, 2024, was being released ahead of the official announcement of the financial results for the said period.
Also read: Naukri and 99acres Apps Removed from Google Play Store: Info Edge Takes a Hit
Analysts at Nomura interpreted the strong recovery in Naukri billings as a potential indication of a turnaround in IT hiring. The company’s management echoed this sentiment, expressing optimism about the apparent stabilization in IT hiring trends, citing near-peak utilization levels among major IT services companies.
According to Naukri, approximately 85 percent of companies are contemplating the commencement of campus hiring activities in FY25, coupled with significant deal wins. Moreover, the Naukri jobspeak index indicated a robust recovery in February, with a noteworthy month-on-month growth of 13.2 percent.
Buoyed by the strong performance in the March quarter and the potential bottoming-out of IT hiring, Nomura anticipates that Info Edge will report a year-on-year billings growth of 15 percent in FY25, a significant improvement from the flat performance in FY24. Nomura maintains a ‘buy’ rating on the stock, setting a target price of Rs 6,210.
However, Nomura also highlights downside risks, including a sluggish recovery in the recruitment classified vertical and underperformance of its listed investments.
As of 10:02 am, Naukri shares were trading 7.5 percent higher at Rs 6,105 on the National Stock Exchange (NSE). Year-to-date, the stock has surged by nearly 19 percent, outpacing the benchmark Nifty 50, which has risen approximately 4 percent over the same period.
Sources: moneycontrol.com
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