Macquarie has retained its ‘Underperform’ rating on Info Edge (INFOE) but raised the target price to ₹5,200, citing high valuations despite the company’s strong market position in online recruitment. The brokerage acknowledges Naukri’s leadership in the job portal space, but expects billings growth to remain in the low teens, leading to a below-consensus target multiple.
While 99Acres has shown a reduction in losses, Macquarie believes its impact on Info Edge’s overall valuation remains modest. The brokerage has also marked down its valuation of Zomato and PolicyBazaar in the company’s investment book, estimating that Info Edge’s current share price implies a 40x FY27E P/E and a 30x EV/EBITDA multiple for its core Naukri business.
Potential catalysts for the stock include hiring trends (tracked through the monthly JobSpeak index), markdowns in the investment book, and the impact of AI on IT hiring, which remains a significant unknown. Macquarie’s cautious stance stems from demanding valuations and uncertain macroeconomic conditions affecting hiring sentiment.
