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Info Edge (India) Ltd Stock Analysis

Large Cap
Evaluated by 2839 users | BSE: 532777 | NSE: NAUKRI |
BPO/ITeS

Info Edge has an in-depth understanding of the Indian consumer internet domain. With years of experience in the domain, strong cash flow generation and a diversified business portfolio, it one of the very few profitable pure play internet companies in the...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Info Edge (India) Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 20.26%22.97%15.44%17.25%12.24%6.01%12.31%8.91%12.53%8.83%
Value Creation Index 0.240.750.190.33-0.06-0.54-0.05-0.31-0.04-0.32
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2943774375066117188029151,0981,273
Y-o-Y Gr. Rt.-28.3%16%15.7%20.9%17.4%11.8%14.1%20%15.9%
Adjusted EPS (Rs.) 7.7110.88.6211.1412.188.4218.9914.7522.4716.46
Y-o-Y Gr. Rt.-40.1%-20.2%29.2%9.3%-30.9%125.5%-22.3%52.3%-26.8%
Book Value per Share (Rs.) 42.1252.2460.4669.55138.16146.42159.37170.48189.06195.63
Adjusted Net Profit 84.211894.1122146102230179274201
Net Op. Cash Flow (Rs. Cr.) 110126100136139110228307296302
Debt to Cash Flow from Ops 0.010.010.010.010.010.010000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Info Edge (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 17.7%15.8%16.6%15.9%
Adjusted EPS 8.8%6.2%-4.7%-26.8%
Book Value per Share 18.67.27.13.5
Share Price 37% 43.6% 52.6% 88.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 19.9322.7315.1817.0412.075.8812.178.7712.378.47
Operating Profit Margin (%) 34.1938.2934.2632.9729.8119.3628.8232.9531.5432.09
Net Profit Margin (%) 28.6431.2621.5224.0423.9414.1628.6719.5824.9615.82
Debt to Equity 0000000000
Working Capital Days 233261247232248547736517516531
Cash Conversion Cycle -42-42-44-41-30-17-20-28-29-25
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 38.47%
Institutions 51.94%
Non-Institutions 9.59%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Info Edge (India) Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Info Edge (India) Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Info Edge (India) Ltd's performance infers:

Info Edge (India) Ltd earnings have grown by 6.2%, whereas share price has appreciated 43.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Info Edge (India) Ltd share prices over the last 10 years. Here is what we found out:

Info Edge (India) Ltd share price has appreciated 32.6% annually over the past ten years.

Info Edge has an in-depth understanding of the Indian consumer internet domain. With years of experience in the domain, strong cash flow generation and a diversified business portfolio, it one of the very few profitable pure play internet companies in the country.

The company was incorporated on May 1, 1995 under the Companies Act, 1956 as Info Edge (India) Private Limited and became a public limited company on April

Info Edge has an in-depth understanding of the Indian consumer internet domain. With years of experience in the domain, strong cash flow generation and a diversified business portfolio, it one of the very few profitable pure play internet companies in the country.

The company was incorporated on May 1, 1995 under the Companies Act, 1956 as Info Edge (India) Private Limited and became a public limited company on April 27, 2006. Starting with a classified recruitment online business, naukri.com, Info Edge has grown and diversified rapidly, setting benchmarks as a pioneer for others to follow. Driven by innovation, creativity, an experienced and talented leadership team and a strong culture of entrepreneurship, today, it is India’s premier online classifieds company in recruitment, matrimony, real estate, education and related services. The Company is primarily engaged in providing online and offline services primarily through its online portal Naukri.com, Jeevansathi.com, 99 acres.com, shiksha.com and offline portal Quadrangle.com.

Business area of the company

  • Recruitment: Online recruitment classifieds, www.naukri.com, a clear market leader in the Indian e-recruitment space, www.naukrigulf.com, a job site focused at the Middle East market, offline executive search (www.quadranglesearch.com) and a fresher hiring site (www.firstnaukri.com). Additionally, Info Edge provides jobseekers value added services (Naukri Fast Forward) such as resume writing.
  • Matrimony: Online matrimony classifieds, www.jeevansathi.com, is among the top three in India’s online matrimonial space, and has offline Jeevansathi Match Points and franchisees.
  • Real Estate: Online real estate classifieds, www.99acres.com, is India’s largest property marketplace covering almost all the major cities and a large number of agents and developers.
  • Education: Online education classifieds, www.shiksha.com, is the smartest gateway for students to achieve their goals.

Services

Recruitment Classifieds & Related Services

• Naukari.com
• Firstnaukri.com
• Naukrigulf.com
• Quadranglesearch.com

Real Estate

• 99acres.com

Matrimony

• jeevansathi.com

Education

• shiksha.com

Investee Companies

• Zomato Media Private Limited.
• Applect Learning Systems Private Limited.
• Etechaces Marketing and Consulting Private Limited.
• Kinobeo Software Private Limited.
• Happily Unmarried Marketing Private Limited.
• Canvera Digital Technologies Private Limited.
• Mint Bird Technologies Private Limited.
• Green Leaves Consumer Services Private Limited.
• Rare Media Company Private Limited.

Milestones

  • March 1997: www.naukri.com launched.
  • FY 1999: www.naukri.com breaks even
  • April 8, 2000: ICICI Information Technology Fund makes a private equity investment of about Rs 72.9 million in Info Edge (this investment was later novated in favor of ICICI Emerging Sectors Fund)
  • November 1, 2000: Quadrangle business acquired
  • September 2002: Business becomes profitable post VC funding
  • September 2003: Initiated television advertising
  • September 2004: 100% ownership of Jeevansathi Internet Service Private Limited achieved
  • September 2005: www.99acres.com launched
  • April 2006: Private equity investors, Klenier PerkinsCaufield and Byers and Sherpalo LLC, agree to acquire, through Murugan Capital and Sherpalo Mauritius LLC, respectively, 5% of Info Edge’s pre-issue equity share capital by means of a secondary purchase
  • July 2006: International operation launched with www.naukrigulf.com
  • November 2006: Info Edge is listed publically in India
  • October 2007: Investment in Studyplaces Inc. (www.studyplaces.com)
  • May 2008: www.shiksha.com launched. Investment in Applect Learning Systems Pvt. Ltd. (www.meritnation.com)
  • September 2008: Investment in Etechaces Consulting and Marketing Pvt. Ltd. (www.policybazaar.com)
  • May 2009: www.firstnaukri.com launched
  • July 2010: Investment in Zomato Media Pvt. Ltd. (www.zomato.com)
  • February 2011: Investment in Nogle Technologies Pvt. Ltd. (www.floost.com)
  • April 2011: Investment in Kinobeo Software Pvt. Ltd. (www.mydala.com). Investment in Ninety Nine Labels Pvt. Ltd. (www.99labels.com)
  • August 2012: Investment in Canvera Digital Technologies Pvt. Ltd. (www.canvera.com)
  • October 2012: Investment in Happily Unmarried Marketing Pvt. Ltd. (www.happilyunmarried.com)
  • August 2015: Investment in Mint Bird Technologies Private Limited (www.vacationlabs.com)
  • November 2015: www.bigstylist.com launched
  • January 2016: www.bluedolph.in launched
  • October 2019: Info Edge invests Rs 6 crore in Happily Unmarried Marketing
  • October 2019: Info Edge ink pact to acquire securities in Metis Eduventures
  • November 2019: Info Edge ink pact to invest in Terralytics Analysis
  • November 2019: Info Edge ink pact to invest in LLAMA Logisol
  • January 2020: Info Edge ink pact to divest entire stake held in Applect Learning Systems
  • March 2020: Info Edge signed agreement to invest Rs 7 crore in Medcords

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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