Stock to Watch – Naukri

• Naukri consolidated net profit for Q4FY24 was ₹88 cr, stark contrast to ₹503.2 cr loss in same quarter last year.
• Naukri revenue growth was driven by both recruitment & non-recruitment businesses, with notable contributions from 99acres.com, Jeevansathi.com, & Shiksha.com.
• Info Edge recruitment business witnessed 3.4% year-on-year revenue growth in Q4, reflecting strong market demand.
• Info Edge non-recruitment business segments, including 99acres.com, Jeevansathi.com, & Shiksha.com, showed robust performance with double-digit growth.
• Brokerage firms target price for Info Edge stock has been raised, with firms like Nuvama & JM Financial maintaining 'buy' rating.
• Naukri dividend announcement of ₹12 per share for FY24 underscores company’s commitment to delivering shareholder value.
• Naukri EBITDA margin improved quarter-on-quarter, reflecting efficient cost management & strong revenue streams.
• Naukri IT recruitment recovery was highlighted by double-digit growth in IT billings, signaling positive market trend.
• Naukri financial health is robust, with 13.2% year-over-year growth in cash from operations, reaching cash balance of ₹4,191 cr as of March 31, 2024.

Quarterly Results

Why It Continues to Remain Our Preferred Bet in Technology Space 

1. Info edge share price continues to attract investor interest due to its consistent revenue growth & robust financial health. Naukri stock price benefits from strong billing growth in its core recruitment business & significant improvements in non-recruitment segments, including real estate, matrimony, & education.
2. Naukri share price is further supported by positive outlooks from brokerage firms such as Nuvama Wealth Management & JM Financial, which have raised their target prices to ₹7,050 & ₹7,000 respectively. Naukri stock price reflects company's strategic reduction in marketing expenses, improvement in EBITDA margins, & signs of recovery in IT recruitment business.
3. Info Edge share price reflects confidence of investors in Info Edge's ability to leverage its strong cash flows for future investments & shareholder returns. company's robust financial performance, coupled with favourable market environment, makes Naukri stock price compelling investment opportunity.
4. Naukri share price has surged by 49% over last year, significantly outperforming Sensex, which gained 19% during same period. This outperformance & positive financial indicator ensure that Naukri stock price remains preferred bet in tech-driven recruitment & real estate sectors.

Info Edge (India) Ltd Strength

• Naukri is almost debt free.
• Info Edge has delivered good profit growth of 55.9% CAGR over last 5 years.

Info Edge (India) Ltd Weakness

• Info Edge Stock is trading at 2.67 times its book value.
• Naukri has a low return on equity of 5.92% over last 3 years.
• Info Edge earnings include an other income of Rs.303 Cr.

Conclusion 

Naukri share price surged 49% over last year, significantly outperforming equity benchmark Sensex. Q4 FY24 financial performance of Info Edge saw 8.7% year-on-year increase in consolidated revenue from operations.