IIFL Securities's Stock Pick Today: Buy Info Edge (I) with Target Rs 7310

IIFL Securities has given a buy call on Info Edge (I) Ltd., with a target price of Rs 7310. The current market price of Info Edge (I) is Rs 7187.1. The brokerage firm believes that the company is well-positioned to benefit from the growth in the online classifieds and recruitment markets. Info Edge (I) is a leading player in the online classifieds and recruitment markets in India. The company's key businesses include Naukri.com, 99acres.com, and Shiksha.com.

About Info Edge (I):

Info Edge (India) Ltd. is a leading digital platform company in India. Established in 1995, it operates several popular online platforms, including Naukri.com (a job portal), 99acres.com (a real estate portal), Jeevansathi.com (a matrimony portal), Shiksha.com (an education portal), and Zomato (a restaurant discovery and food delivery platform). Info Edge also has investments in startups and ventures, including Zomato, PolicyBazaar, and Urban Company. The company's revenue is primarily generated through advertising, subscription fees, and transaction fees from its various platforms.

52 Week Price Trend:

Info Edge (I) is currently trading at Rs 7187.1, significantly higher than its 52-week low of Rs 3308.2 but below its 52-week high of Rs 5545. This indicates that the stock has been on an uptrend over the past year, with a 54% gain from its low. However, it has not reached the highs it achieved earlier in the year. Investors may consider the current price in relation to the stock's historical range and potential growth prospects before making investment decisions.

Stratzy's MOST Analysis:

NAUKRI has received a BB- rating under Stratzy's MOST framework, indicating medium fundamental risks. The framework evaluates companies based on Management, Outlook, Safety, and Trend pillars. NAUKRI's rating suggests that it has some strengths and weaknesses across these pillars. The company may face moderate management risks, have a somewhat positive outlook, and exhibit some financial safety and stability. However, there may be concerns regarding its long-term trend or growth prospects.

Company's Fundamentals:

Info Edge, listed on the NSE with the symbol NAUKRI, has a trailing twelve-month Stock PE ratio of 321.78, indicating that investors are willing to pay a substantial premium for the company's earnings. Its Price-to-Book Ratio (PB Ratio) of 3.45 suggests that Info Edge's market value exceeds its book value, implying a potential premium paid by investors for its growth prospects. Despite its high valuations, Info Edge offers a modest Dividend Yield of 0.36%, indicating a low proportion of earnings distributed as dividends to shareholders.

Fundamental and Technical information provided in this blog were last updated on 26 Jul, 2024

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