Info Edge - Worst Seems To Be Behind Us In IT hiring; Time For A Resurgence? ICICI Securities

ICICI Securities Report

Info Edge India Ltd.’s stock has corrected ~35% from all-time highs over the last two years on growing concerns around IT hiring and the worsening global macro outlook amidst rising geopolitical risks.

Now that the global macro outlook is improving and Naukri’s ‘JobSpeak’ data seems to indicate sequential improvement in IT hiring trends, we believe the stock is likely to re-rate.

In addition, the real estate vertical is showing signs of profitability improvement; in our view, this vertical could start contributing materially to valuations from FY25.

Also, the current stock price doesn’t reflect the sharp improvement in stock price of the publicly listed investee companies such as Zomato and PB Fintech.

At current market price we also think that risk-reward is heavily skewed (2.8:1) to the upside, which gives us valuation comfort.

We therefore re-initiate with a 'Buy' rating and a target price of Rs 6,050, based on a SOTP valuation framework.

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