Citi has maintained a Buy rating on Info Edge, but revised its target price to ₹1,675 per share. The brokerage noted that the company’s Q4 EBITDA missed estimates primarily due to elevated advertising and promotional (A&P) expenditure across its recruitment and property segments.
According to Citi, the management commentary suggests FY25 billings growth benefited from the normalization of attrition rates in the IT services sector. Citi also highlighted that Info Edge continues to broaden its client base across sectors and geographies while enhancing its revenue streams and market share, especially when compared with recruitment consultants.
Looking ahead, Citi believes that attrition rates in IT services may not spike further, and expects other growth drivers to persist for the company.
Disclaimer: The views and target prices mentioned in this article are as stated by the respective brokerage firms. They do not represent the opinions or recommendations of this publication. Readers are advised to consult their financial advisors before making any investment decisions.
