The share price of Info Edge (India) fell over 2 percent in early trade on Tuesday after brokerages maintained mixed views on the company's Q4 earnings announced on Monday.
The company’s net profit in the fourth quarter rose 60.3 percent to Rs 66.7 crore from Rs 41.6 crore in the year-ago period. Revenue during the quarter fell 10.2 percent to Rs 290 crore from Rs 322.8 crore, YoY.
EBITDA in Q4FY21 decreased 44.9 percent YoY to Rs 53.1 crore and EBITDA margin was down at 18.3 percent.
Goldman Sachs maintained a Sell rating on the stock with a target of Rs 2,760 per share.
The brokerage has a strong outlook for recruitment business and believes the company is well placed to capture upside from B2B spends in India moving to digital. It raised FY22-24 revenue estimates by up to 4 percent.
However, the brokerage sees a mismatch between growth outlook and valuations.
Macquarie has an Underperform call with a target of Rs 4,220 per share.
"The sequential improvement in core business continued. The cash balances pile up with the company as it is evaluating investment opportunities," the brokerage said.
CLSA said Info Edge reported headline financials below its estimates yet billings at Rs 4.2 billion were significantly ahead of estimates. "With management indicating a limited impact of wave 2 in Q1FY22, we expect revenue growth to bounce back sharply by 2Q22. Operating leverage in the business model should ensure its flow-through into margins," CLSA said.
It maintained an Outperform rating but cut the target price to Rs 5,470 per share from Rs 5,740 earlier.
ICICI Direct believes Info Edge will be a key beneficiary of a shift of advertising on the online medium. In addition, digital on-boarding of talent and strong traction in the IT& ITeS segment bode well for revenue growth, ICICI Direct said.
The brokerage upgraded the stock from Hold to Buy and raised the target price to Rs 5,740 per share from Rs 5,725 earlier.
At 11:33 am, the stock was trading 1.22 percent lower at Rs 4,917 apiece on the BSE.
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