5 NAUKRI share price target reports by brokerages below. See what is analyst's view on NAUKRI share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
While we believe that these are a positive development for INFOE, we continue to believe that the core/standalone business of the company is expected to suffer in the near term as the growth prospects of the company are closely linked to GDP growth of the company. Hence we do not see any reason to change our stance or valuation of the company. We continue to recommend a “SELL” on the stock with a target price of Rs. 2092 based on SOTP valuation. The standalone business is valued at a 3-yr historical average FY22E PE of 64x, Policybazaar and Zomato are valued based on their last round of funding.
Despite slowdown concerns, we are positive on long term story of the stock, given the moats the company enjoys in its core businesses. However, we believe the future potential is adequately priced in. This coupled with risks to growth in the short term due to economic slowdown makes us to continue with “SELL” rating. We value INFOE on SOTP basis with standalone business valued at 5-Yr historical FY21E PE of 61.6x to arrive at a target price of Rs. 2341, downside of 10%.
Valuation – reiterate Hold with PT of 2,350: We have fine-tuned ourearnings estimates for FY2020E/FY20201E factoring in the implementation of INDAS-116, below-than-expected operating profitability and anticipated lower billing growth in 99acres. However, in the long term, we believe that leadership position in its core businesses along with improving valuation in certain investee companies (Zomato and PolicyBazaar) bodes well for the company. The stock price has moved up by around 16% in the past three months, which has capped the upside potential. Hence, we maintain our Hold rating on the stock price with an unchanged SOTP-based price target (PT) of Rs. 2,350.
Info Edge’s stock price has moved up by around 17% in the past 15 days, considering strong broad-based performance in Q4FY2019 and rapid scaling up of cities by Zomato. Though core businesses are well poised to progress well in FY2020E/FY2021E, the recent run up in the stock price has capped the upside. Hence, we have downgraded our rating from Buy to Hold with a revised SOTP-based price target (PT) of Rs. 2,350. In the long term, we believe leadership position in its core businesses along with improving valuation in certain investee companies (Zomato and PolicyBazaar) would bode well for the company.
INFOE reported a strong set of numbers for Q4FY19 with revenue visibility for the coming quarters. Among investee companies, we believe that policybazaar has some steam still left when it comes to driving valuations. However, we believe thatcurrent valuations fully reflect this. Given the rich valuations and recent run up in thestock, we recommend a SELL with a target price of Rs. 2060, an Downside of 9%. We value standalone business of INFOE at 3 yr average FY21E PE of 60.3. On a SOTP valuation basis, we value INFOE at Rs. 2060.
The revenue growth is expected to remain robust mainly led by traction in Naukri and 99 acres. However, intense competition and the company’s effortto build brand and new products is expected to limit margin expansion. This coupled with recent run up in stock price prompts us to revise our rating from BUY to HOLD. We value the stock on an SOTP basis and arrive at a target price of Rs 2,080 per share.
We believe that IEL management’s capability to identify value-additive early-stage investments gives it a long-term edge. We remain positive on the company in light of its sustained growth in the core recruitment business and real estate business. Zomato’s phenomenal growth, according to us, justifies the USD2bn valuation assigned to it. The stock has run up, but we believe offers reasonable upside potential. Maintain ‘BUY/SP’ with an SoTP-based TP of INR1,968.
Despite bright prospects of the company and strong potential of its investments like Zomato and policybazaar.com, we continue with our “HOLD” recommendation given the sharp run up in the stock price. We value company on SOTP basis (Exhibit 1) with a target price of Rs. 2003 (upside of 6%). We value standalone entity at a 7-year historical average PE of 59x. Zomato and policybazaar.com are valued based on valuation given in last round of funding. Investments in other investee companies and associate companies are valued at their carrying book value. Key risks include increasing competitive intensity and technical disruption in its key businesses.
Improving traction across segments: A leadership position in core businesses along with improving valuation in certain investee companies (Zomato and PolicyBazaar) is expected to bode well for the company. Zomato continues to remain aggressive on its expansion plans to protect its market share from close competitors. We believe PolicyBazaar, which commands over 50% share of total online insurance space, is set to begin its multi-year growth journey. Therefore, we maintain our Buy rating on Info Edge with a revised SOTP- based price target (PT) of Rs.2,100.
The key takeaways from our recent meeting with management of Info Edge (IEL) are: 1) Hiring has picked up across sectors, and IEL (naukri) expects strong revenue growth of 22-22% going forward 2) The secondary market demand in real estate is strong, which bodes well for 99acres and will lead to high growth 3) Jeevansathi will continue to spend on advertising and pricing to gain market share while cash burn for Shiksha is largely behind. 4) Zomato has enough cash to grow and sustain, and IEL will not receive any cash from the recent USD172mn deal to sell its UAE food delivery business to Delivery Boy as Zomato will plough the proceeds to grow its business. We remain positive on IEL as a diversified play on India’s internet sector. Maintain ‘BUY’ with an SoTP-based target price of INR1,968.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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