India's Info Edge falls; Macquarie says valuation too high for its growth view

Info Edge (India)

04/03/2025 07:13

** Info Edge INED.NS, parent co of job portal Naukri.com, down 2.65% to 6,777 rupees

** Stock price lowest in nearly 8 months

** Macquarie maintains street-low PT

** Sees billings growing in only low teens percent

** Says, growth not conducive to current valuation, with shares trading at 40x the FY27 price-to-equity ratio

** With Naukri's cash flows subsidizing loss making divisions, return on equity is a mere 5% at group level -Macquarie

** Brokerage raises PT by 25%, but at 5,200 rupees it implies a 23.2% downside to current price

** Stock rated 'buy' on avg by 18 analysts; median PT at 8,750 rupees - data compiled by LSEG

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))