Info Edge India Ltd – Stock Analysis

Info Edge (India) Ltd – Business Portfolio

Info Edge India Ltd – Stock Analysis

Detailed Share Review

Introduction

In this article, we will analyze Info Edge India Ltd Stock. It is India’s premier online classified company in recruitment, matrimony, real estate, education and related services.

Info Edge India Ltd – Stock Analysis

Company Overview

  • Info Edge (India) Ltd was incorporated on May 1, 1995. Starting with a classified recruitment online business, naukri.com, Info Edge has grown and diversified rapidly, setting benchmarks as a pioneer for others to follow.
  • It is a leading provider of various portals related to online recruitment, matrimonial, real estate and education classifieds and related services in India. The company has an in-depth understanding of the Indian consumer internet domain.
  • With years of experience in the domain, strong cash flow generation and a diversified business portfolio, Info Edge (India) is one of the very few profitable pure play internet companies in India.
  • Innovation, Creativity, an Experienced and Talented Leadership team and a strong culture of Entrepreneurship are the key drivers of the company.

Info Edge (India) Ltd – Business Portfolio

Info Edge (India) Ltd – Business Portfolio
Info Edge India Ltd Stock Analysis

Info Edge (India) Ltd’s business portfolio comprises of :

  1. Recruitment : 
    • Online recruitment classifieds, www.naukri.com, a clear market leader in the Indian e-recruitment space, www.naukrigulf.com, a job site focused at the Middle East market, offline executive search (www.quadranglesearch.com) and a fresher hiring site (www.firstnaukri.com).
    • Additionally, Info Edge provides jobseekers value added services (Naukri Fast Forward) such as resume writing.
  2. Matrimony : Online matrimony classifieds, www.jeevansathi.com, is among the top three in India’s online matrimonial space, and has offline Jeevansathi Match Points and franchisees.
  3. Real Estate : Online real estate classifieds, www.99acres.com, is India’s largest property marketplace covering almost all the major cities and a large number of agents and developers.
  4. Education : Online education classifieds, www.shiksha.com, is the smartest gateway for students to achieve their goals.
  5. Start-up Investments : The company’s spirit of entrepreneurship has also made investments in early stage companies/start-up ventures to tap into the growing and vibrant Indian internet market. 
    • Zomato : It is online restaurant search engine and food delivery site. Info Edge India Ltd is having shareholding of about 26.4% in Zomato.
    • Policybazaar.com : As we know, Policybazaar.com is online insurance policies marketplace. Info Edge is having a stake of about 15.8% in it.

Thus, Info Edge (India) is planning to increase its presence demography wise, explore new potential segment to launch portals and develop new technologies, processes and frameworks.

Shareholding Pattern

Info Edge (India) Ltd - Shareholding Pattern
Info Edge (India) Ltd – Shareholding Pattern

Financials – Past 5 Years Performance

Info Edge India Ltd Key Financials
Info Edge India Ltd Key Financials
  • The Revenue of Info Edge India Ltd is growing at a CAGR of 16.5%, while operating profit before tax (PBT) is growing at a CAGR 17.5%
  • Major profitability comes from Naukri.com segment. Profits from Recruitment (Naukri.com) is ploughed back to build 99acres, Jeevansathi and Shiksha segments.
  • The investments in start-ups for FY2019 is Rs.1,025 Crore. It is increased almost 32% compared to FY2018 (Rs.778 Crore).

Key Parameters

  • Current Market Capitalization = Rs.27,228 Crore, Large Cap Company.
  • PE Ratio = 89, Here, an important aspect of valuation should be taken into the consideration by the investors that the underlying investments of the company is being traded at completely another parameters of valuation. Here, profitability is not the only parameter for PE valuation. And therefore, we should not evaluate the Info Edge (India) Ltd stock according to the usual PE valuation analysis.
  • Thus, it is definitely a risky business to invest in such stocks, because they are discounting the future of other businesses. If it is not worked out in future, then it will be very risky for the investors. Agressive investors and the investors who understand the future of digital business platform of can opt for the stock.

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