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Info Edge (India) Ltd: Long-Term Investment View

Lesson 118/225 | Study Time: 5 Min

Course: Top Quality Companies

📊 Info Edge (India) Ltd: Long-Term Investment View

🏢 Company Overview:

Info Edge (India) Ltd, founded in 1995, is India’s leading consumer internet company, operating dominant digital platforms across:

Recruitment (Naukri.com)
Real Estate (99acres.com)
Matrimony (Jeevansathi.com)
Education (Shiksha.com)

The company also holds strategic investments in several unlisted and listed startups such as Zomato, Policybazaar, and others through its Venture Funds (Capital2B, Redstart Labs, etc.).

🌐 Industry & Growth Potential:

Info Edge sits at the center of India’s digitization boom, with key tailwinds:

Formalization of job markets
Online migration of real estate search & transactions
AI-led personalized hiring
Emergence of Tier-2/3 markets
High mobile & internet penetration

Recruitment tech is expected to grow 15–20% CAGR in the coming years, with strong monetization levers across both job seekers and employers.

📈 Financial Journey: Sales & Profits Over the Years

Year	Sales (₹ Cr)	Profit (₹ Cr)
FY2002	4	-3.3
FY2006	84	10
IPO FY2007	147	27
FY2016	938	512
FY2022	1589	12,882 (one-off gains)
FY2025	2849	1310
FY2026E	3419	1470 (Est.)

Over 23 years, Info Edge has:

Grown sales at ~17-18% CAGR
Profits scaled 23% CAGR over 15 years
Asset-light, cash-rich model with consistent positive operating cash flow

📊 Margin Evolution & Profitability

Historical Net Profit Margin (NPM%) averaged ~30–35%
FY2026E margin: 43%, consistent with long-term trend
FY2021-2022 spike due to investment revaluations

⚙️ Segmental & Subsidiary Growth

1. Recruitment (Naukri.com + Hirist + IIMJobs + Job Hai)

Contributes >70% of revenues
FY26 Q1: Revenue ₹542 Cr (+15%), Margin: 53%
CV base: 108 million resumes
Key monetization levers: AI search, resume view credits, employer branding

2. Real Estate (99acres.com)

Q1 FY26: ₹111 Cr (+12% YoY)
Focus on resale + rental; growing developer listings
High ad spend, investing for leadership

3. Matrimony (Jeevansathi.com)

Q1 FY26: ₹34 Cr (+29% YoY), reached breakeven
Freemium model showing traction

4. Education (Shiksha.com)

₹50 Cr in Q1 FY26 (+19%)
Targeting domestic universities
Some impact from AI bots (like ChatGPT) in content queries

🌍 Geographical Growth

Tier 2/3 towns key focus for Naukri, Job Hai
Middle East growth via Naukri Gulf
Offline presence expanded to 80+ cities

💼 Strategic & Financial Investments

From Zomato to Policybazaar, Info Edge has:

Reaped massive investment gains (e.g., ₹12,882 Cr in FY22)
Built Capital2B, Redstart, IE Venture Fund for emerging tech bets
Participates in early-to-growth-stage tech disruptions

💹 Valuation Trends:

PE & PB History:

Year	Low PE	High PE	Low PB	High PB
FY2015	31	60	4.2	8.1
FY2024	80.8	126.6	1.5	2.4
FY2026E	73	97.9	2.1	2.9

PE ratios normalize post-pandemic re-ratings
PB nearing historic lows → Value re-emergence?

📊 Future Estimates: FY26 & Beyond

Year	Sales	Profit	EPS	Book Value	Fair Price (Blended)
FY26	₹3419 Cr	₹1470 Cr	₹17	₹543	₹1372
FY30	₹5980 Cr	₹2342 Cr	₹27	₹855	₹2301
FY35	₹12027 Cr	₹4710 Cr	₹53	₹1507	₹4168

💼 Portfolio Allocation Suggestion

CMP (FY25): ₹1372
Suggested Weightage: ~2.35%
High strategic value + cash reserves + optionality on startup ecosystem

📉 Key Risks

Macro hiring slowdowns (e.g., BFSI, Infra)
AI bots disrupting content-led verticals like Shiksha
Prolonged investment losses (Zomato, PB Fintech, etc.)

🏁 Conclusion: Long-Term Risk & Reward

✅ Why Consider Info Edge for Long-Term?

Consistent growth engine across segments
High-margin, cash-generating business
Optionality via startup investments
India's digital consumption play

⚠️ Risks to Watch:

Segment-specific slowdowns (esp. non-recruitment)
Competition from niche vertical players
Over-reliance on ad spends for smaller segments

🧾 Disclosure:

This is a research-based overview prepared using publicly available data, investor presentations, and earnings reports. This is not investment advice.

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Piyush Patel

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