Company Review:

Info Edge India Limited drive diversified online businesses, first and foremost an online job posting website Naukri.com, which offers services for recruiters, job seekers, and employers. Info Edge India Limited also operates an online matrimonial website Jeevansathi.com for prospective brides, grooms, and relatives, a real-estate portal website 99acres.com and an education portal website Shiksha.com. The Company also has possession of allcheckdeals.com an online real estate brokerage dense, which is run as a subsidiary company. Spaced out from this, Info Edge has made significant strategic investments into emerging internet companies like meritnation.com, policybazaar.com, mydala.com, Canvera.com and zomato.com. Info Edge India Limited having its headquarters in Noida (NCR), Info Edge employs over 2,700 people and operates through 48 offices in 31 cities across India and overseas.

Company Financial View:

For Q2FY14, the company revenue of Rs 123Crs (up 15.5% YoY) led by continued momentum in Non-recruitment businesses (up 45% YoY) at the same time as recruitment revenue growth was eight percent YoY supported by IT segment recruitment and certain market share gains. EBITDA at Rs 43.6Crs increased 18.3% QoQ and EBITDA Margin at 35.5% expanded by robust 494bps QoQ (+195bps YoY) led by lower S&M Investments and better realizations. PAT at Rs33.3Crs was up 13.1 percent QoQ led by improvement in profitability of Non-recruitment business (Jeevansaathi, 99acres) with combined losses coming down to Rs2.2Crs against Rs9Crs in Q1FY14.

Staffing revenue at Rs.90.3Crs (up 8 percent YoY) was the highest in the past three quarters with stable recruitment business margin at 50.7 percent (against 50.3% in Q1FY14 & 50% in Q2FY13). Non recruitment revenue at Rs.33.3Crs (up 45% YoY) was highest in the past 9 quarters chiefly driven by strong growth in paid listings at 99 Acres.com (Revenue up by 57% YoY) and price hikes in Jeevansaathi.com

Company Assessments:

At the CMP of Rs 470 the stock trades at P/E of 54.7xFY13, 33.5xFY14E and 26.4xFY15E with the EPS of 8.4, 13.7 & 17.4 respectively. EPS growth rate of 63 percent for FY14E & 28 percent for FY15E compare very well despite the high P/E. Going forward, the valuations will get rationalized and considering Company's diversified online business, momentum in Non recruitment business and strategic investments in the growing internet space, Info Edge (India) Limited is trading at Rs. 470, recommended to buy near Rs. 470-450 levels for investment horizon; it may touch Rs. 550 in a time period of 3-9 months.

Bse Id: 532777

Nse Id: Naukri

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