Info Edge (NSE: INFOE) shares fell 3% after Macquarie maintained its ‘Underperform’ rating, despite raising the target price to ₹5,200. As of 9:18 AM, the shares were trading 3.03% down at Rs 6,751.00.
The brokerage cited high valuations as a concern, even as Info Edge continues to dominate the online recruitment market with its flagship platform, Naukri.
Macquarie expects Naukri’s billings growth to remain in the low teens, leading to a lower-than-consensus target multiple. Meanwhile, the company’s real estate platform, 99Acres, has reduced losses, but its overall impact on Info Edge’s valuation remains minimal.
Additionally, the brokerage has revised downward its valuation of Info Edge’s investments in Zomato and PolicyBazaar, estimating that the current stock price reflects a 40x FY27E P/E and a 30x EV/EBITDA multiple for the core Naukri business.
Key factors influencing Info Edge’s stock performance include hiring trends tracked through the JobSpeak index, potential markdowns in its investment portfolio, and the evolving role of AI in IT hiring. Macquarie remains cautious due to steep valuations and macroeconomic uncertainties affecting hiring sentiment.
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