Info Edge shares jump 9% on Q4 update; here’s what Nomura said on stock

Info Edge's stock hit a 52-week high post 10.45% YoY billings growth. Nomura reiterated buy stance targeting Rs 6,210.

Shares of soared over 9% to hit a fresh 52-week high of Rs 6,185.90 on the NSE on Monday after the Naukri.com operator reported a 10.45% year-on-year (YoY) jump in its standalone March quarter billings at Rs 826.9 crore as against Rs 748.6 crore reported by it in the year-ago period.

For the year ended March 31, 2024, the standalone billings stood at Rs 2,495.9 crore, which were up by 5.47% on a YoY basis versus 2366.3 crore posted by Info Edge in FY23.

Following the company's updates, in its stock review reiterated its buy stance on the counter for a price target of Rs 6,210.

Referring to its Q4 billings as strong, the Japanese brokerage said that strong recovery in Naukri billings suggests a possible bottoming-out of the IT hiring. Other vertical billings also grew ahead of estimates, it noted.

The stock has rallied over 60% in the past 12 months while gaining 19% in 2024 so far. Its returns remain superior to Nifty in both time frames. The benchmark has risen over 28% in the last one year while 4% on a year-to-date (YTD) basis.

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Segment-wise, its recruitment solutions vertical witnessed billings of Rs 625.4 crore in the reported quarter versus Rs 583.5 crore in the corresponding quarter of the previous financial year. Its property vertical 99acres reported billings of Rs 131.1 crore in Q4FY24 versus Q4FY23.

The company's topline increased by 6.38% with the profit at Rs 151.09 crore in the December quarter.

The stock is currently trading above its 50-day and 200-day simple moving averages. Its momentum indicator MFI is in an overbought zone and hovering over 70 mark, according to Trendlyne. As for RSI, it was near 66. A number above 70 is considered to be overbought while below 30 is seen to be oversold.

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Source: Stocks-Markets-Economic Times