IIFL Securities's Stock Idea: Buy Info Edge (I) with Target Rs 6210

On May 13, IIFL Securities issued a "buy" recommendation for Info Edge (I) shares at the current market price of Rs 6087.95. The investment firm has set a target price of Rs 6210 for the stock, implying a potential upside of approximately 2%. This recommendation is based on the company's strong fundamentals, including its diversified portfolio of internet businesses and its track record of consistent growth.

About Info Edge (I):

Info Edge (India) Ltd. is a diversified internet company listed on the National Stock Exchange (NSE) in India. It operates a portfolio of internet businesses in recruitment, matrimony, real estate, education, and payment solutions. Its core businesses include Naukri.com, a leading job portal; Jeevansathi.com, a matrimony website; 99acres.com, a real estate platform; Shiksha.com, an education portal; and Zomato, an online food delivery platform. Info Edge has a presence in India, the Middle East, and Southeast Asia. It is known for its profitable and cash-rich operations, consistently paying dividends to its shareholders.

52 Week Price Trend:

Info Edge is on a strong uptrend, reaching a new 52-week high of Rs 6087.95. This represents a significant increase from its 52-week low of Rs 3308.2. The company has been reporting strong financial performance, with consistent revenue and profit growth. The recent surge in share price can be attributed to positive market sentiment and expectations of continued growth in the online recruitment and classifieds market. Investors remain bullish on Info Edge's long-term prospects, and the stock is trading at a premium valuation.

Stratzy's MOST Analysis:

NAUKRI has received a BB- rating from Stratzy's MOST framework, indicating medium fundamental risks. This rating is based on an assessment of NAUKRI's management, outlook, safety, and trend. The rating suggests that NAUKRI exhibits some strengths and weaknesses in these areas. There may be potential areas for improvement, but NAUKRI is generally considered to have a stable financial position and a sound business model.

Company's Fundamentals:

Info Edge (NSE:NAUKRI) is a leading online recruitment platform in India. As of today, its stock trades at a Price-to-Earnings (PE) ratio of 321.78, indicating that investors are willing to pay a premium for its earnings. The Price-to-Book (PB) Ratio of 3.45 suggests that the market value of the company is 3.45 times its book value, reflecting its strong financial position. Despite its high valuations, Info Edge offers a modest Dividend Yield of 0.36%, indicating that it focuses on reinvesting its earnings for growth rather than distributing dividends to shareholders.

Fundamental and Technical information provided in this blog were last updated on 11 May, 2024

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