Info Edge Snaps Three-Day Fall On Analysts' Thumbs Up After Q4 Results
Info Edge stock rose as much as 8.03% during the day to Rs 6,338.10 apiece on the NSE.
Shares of Info Edge (India) Ltd. snapped a three-day fall and jumped to its highest level in over a month on Friday after brokerages raised target price after the company posted a profit for the quarter ended March.
Info Edge Q4 FY24 Earnings Highlights (Consolidated, YoY)
Revenue up 8.7% to Rs 657 crore vs Rs 605 crore.
Ebitda up 18% to Rs 219 crore vs Rs 186 crore.
Margin expands to 33.4% vs 30.7%.
Net profit of Rs 88 crore vs loss of Rs 503 crore.
Citi Research raised its target price to Rs 6,870 from Rs 6,650 apiece, implying a potential upside of 17% from the previous close. Nuvama Research raised the target price to Rs 7,050 from Rs 6,500 earlier, implying a potential upside of 20.16%.
The company's management saw first signs of recovery in IT recruitment business as IT billing grew in double digits, according to Nuvama. "Attrition at IT services companies has further reduced in Q4, while utilisation increased further."
"We believe hiring by IT companies shall improve further, which shall lead to billing growth acceleration. Moreover, lower base shall support growth acceleration," it said.
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On the NSE, Info Edge's stock rose as much as 8.03% during the day to Rs 6,338.10 apiece, the highest since April 9. It was trading 6.68% higher at Rs 6,257.70 per share, compared to a 0.36% advance in the benchmark Nifty at 12:29 p.m.
The share price has risen 21.59% on a year-to-date basis and 53.37% in the last 12 months. The total traded volume so far in the day stood at 5.24 times its 30-day average. The relative strength index was at 65.
Sixteen out of the 24 analysts tracking the company have a 'buy' rating on the stock, four recommend 'hold' and as many suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 0.3%.
