SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Info Edge (India) Ltd

BSE: 532777 NSE: NAUKRI ISIN: INE663F01032
  |   Sector:  IT & ITES   |   Industry:  BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does Info Edge (India) Ltd belong to?
Info Edge (India) Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.
Q.2 Is Info Edge (India) Ltd a good quality company?
Info Edge (India) Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Info Edge (India) Ltd undervalued or overvalued?
Info Edge (India) Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 10.95 108.91
Price to Book 1.33 3.70
Price to Sales 20.46 32.40
EV to EBITDA 40.09 67.48
Q.4 Is Info Edge (India) Ltd a good buy now?
Info Edge (India) Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Info Edge (India) Ltd?
Info Edge (India) Ltd revenue growth is 11.5% for FY-2025, which is below its 5-year CAGR of 15.83%, indicating slower growth.

Q.2 Gross Profit margin of Info Edge (India) Ltd?
Info Edge (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 51.5% for FY-2025, which is above its 5-year median of 44.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Info Edge (India) Ltd?
Info Edge (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 40.83% for FY-2025, which is above its 5-year median of 36.71% indicating increasing margins.

Q.4 Net Profit Margin of Info Edge (India) Ltd?
Info Edge (India) Ltd Net Profit Margin is 29.15% for FY-2025, is in line with its 5-year median of 29.15%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 51.5 44.3
Operating Profit Margin (%) 40.83 36.71
Net Profit Margin (%) 29.15 29.15

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Info Edge (India) Ltd?
Info Edge (India) Ltd Return on Asset is 2.35%, which is below its 5-year historical median of 3.68%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Info Edge (India) Ltd?
Info Edge (India) Ltd Return on capital employed is 5.17% for FY-2025, which is below its 5-year historical median of 6.27%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.7 Return on Equity (ROE) of Info Edge (India) Ltd?
Info Edge (India) Ltd Return on equity is 2.93% for FY-2025, which is below its 5-year historical median of 4.62%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Info Edge (India) Ltd?
Info Edge (India) Ltd Cash conversion cycle is -15 days, above its 5-year historical median of -25 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.08 0.13
ROE (%) 2.93 4.62
ROCE (%) 5.17 6.27
Cash Conversion Cycle -15 days -25 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Info Edge (India) Ltd?
Info Edge (India) Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Info Edge (India) Ltd?
Info Edge (India) Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Info Edge (India) Ltd?

Q.1 Promoter shareholding and pledge status of Info Edge (India) Ltd?
Promoters hold 37.50% of the Info Edge (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Info Edge (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Info Edge (India) Ltd vs industry peers?
Info Edge (India) Ltd revenue CAGR is 15.83%, compared to the industry median CAGR of 15.83%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 11.5 15.8
Gross Profit Growth (%) 14.1 23.1
Operating Profit Growth (%) 12 21.6
Net Profit Growth (%) -7.2 30.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.08 0.13
ROE (%) 2.93 4.62
ROCE (%) 5.17 6.27
Cash Conversion Cycle (days) -15.29 -25

Valuation & price assessment

Q.1 Stock return of Info Edge (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 20.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
20.1% 1.6% 6.4% -35.9%
Q.2 Valuation ratios of Info Edge (India) Ltd vs historical?
The current P/E ratio of 10.95 is lower than its historical median of 108.91, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 10.95 108.91 29.72
Price to Book 1.33 3.70 2.75
Price to Sales 20.46 32.40 4.18
EV to EBITDA 40.09 67.48 15.58

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: