Midcap Stock Trading 3.56% Away From 52-Week Low, Likely To 37% Returns, Buy, Says Sharekhan

Sharekhan has come up with a "Buy" recommendation for Info Edge (India) Ltd., a midcap Services sector stock. The brokerage has estimated a target price of Rs 4,676 apiece. With the given target price, the stock is likely to give a decent positive return of up to 37%. The company owns various brands in different fields such as naukri.com, 99acres.com, jeevansathi.com as well as shiksha.com. It has a market capitalisation of Rs 44,252.02 crore.

Stock's Current Market Price, and 52-week Low/High

The stock of Info Edge on NSE last traded at Rs 3,425.50 apiece, down 0.91% from its previous close. The stock is trading 3.40% up from its 52 week low, which is Rs 3,313 apiece. Its 52-week high is Rs 4,917.55 apiece.

The stock has continuously fallen over the last 1 year. It has fallen 3.56% in 1 week, 1.11% in 1 month, 17.66% in 3 months, and 25.77% in 1 year, respectively. The stock in the past 3 years gained 49.43% and in the past 5 years it gained 173.88%.

Sharekhan's Views on Stock

1. Maintain Buy on Info Edge with a revised PT of Rs. 4,676/share

Sharekhan said, "We maintain a Buy on Info Edge with a revised PT of Rs. 4,676 given its leadership position in Recruitment and real estate verticals but we have lowered the target price to reflect lower EV/EBITDA multiple for recruitment business (due to slowdown in IT hiring ) and current market value of investment in Zomato and policy bazaar. At CMP the stock trades at 56.1x/50.8x FY24E/FY25E EPS and 49.9x/44.3x FY24E/FY25E EV/EBITDA."

2. Key Risks

According to sharekhan, the key risks are, " Intense competition from international and domestic players in the recruitment business could affect growth trajectory and margins of the recruitment business. Further, high competitive intensity in the real estate segment could enhance losses."

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.