Shares in Info Edge gained 16% to a day’s high of 8,181.25 on BSE as the company declared a net profit of Rs 242.59 crore for the third quarter ended December 24, a YoY growth of 60.6% from 151.09 crore in the corresponding period last year.
The total operations income for the firm was Rs 722.39 crore in the third quarter, up 15.2% over the same period of the previous year, which was recorded at the level of Rs 627.12 crore.
It achieved operating margins, operating profit, and operating profit growth of 39.2 % of the revenue, Rs 263.4 crore, and 20.4%, respectively, on a Standalone basis for Q3FY25 as against the corresponding period of the last financial year.
In terms of billing, Q3 was slightly higher, with 16% compared to the previous year, due to strengthening figures in all four verticals. Our recruitment business maintained its growth path in all segments, which positively affected the operating profits.
Moreover, nearly all non-recruitment businesses are also close to breaking even, and therefore, the company is poised for stable growth in the future, stated Hitesh Oberoi, managing director and chief executive officer of Info Edge.
Should you invest in Info Edge’s share, or should you sell your Info Edge’s share, or should you continue to hold the share? Here’s what analysts say:
Nomura
Nomura has retained its ‘buy’ recommendation on Info Edge and has trimmed its target price for the company to Rs 8,510 from the Rs 8,630 it offered previously.
This has been observed with the growth of the core recruitment segment, with relative stability in real estate billing. It emphasized the fact that Info Edge’s competitive advantage in the market is still strong, which makes it the preferred stock when it comes to the Indian internet.
This is because the company has invested in Zomato, which is among the stocks with the lowest target price.
EBITDA Growth And Margin Expansion
Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) are projected to be around ₹420 crore, a potential 357% YoY increase. This reflects margin expansion due to lower regulatory and clearing costs. EBITDA margin is expected to stand at 55.4%, a sharp jump from 25% in the previous year.
Market Share In Options Segment
BSE’s market share in the options segment has been steadily increasing, reaching 29% in notional turnover and 15% in premium turnover in December 2024, compared to 27% and 13%, respectively, in September 2024.