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NAUKRI - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.3
| Stock Code | NAUKRI | Market Cap | 87,083 Cr. | Current Price | 1,343 ₹ | High / Low | 1,839 ₹ |
| Stock P/E | 83.1 | Book Value | 694 ₹ | Dividend Yield | 0.45 % | ROCE | 4.91 % |
| ROE | 2.75 % | Face Value | 2.00 ₹ | DMA 50 | 1,357 ₹ | DMA 200 | 1,390 ₹ |
| Chg in FII Hold | -2.66 % | Chg in DII Hold | 2.65 % | PAT Qtr | 297 Cr. | PAT Prev Qtr | 260 Cr. |
| RSI | 44.3 | MACD | -1.66 | Volume | 4,37,484 | Avg Vol 1Wk | 6,39,606 |
| Low price | 1,151 ₹ | High price | 1,839 ₹ | PEG Ratio | 6.96 | Debt to equity | 0.01 |
| 52w Index | 27.9 % | Qtr Profit Var | 359 % | EPS | 83.8 ₹ | Industry PE | 30.1 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT rose from ₹260 Cr. to ₹297 Cr. (359% variation), showing strong rebound.
- Margins: ROE at 2.75% and ROCE at 4.91% indicate weak profitability despite high market cap.
- Debt: Debt-to-equity ratio at 0.01 reflects a virtually debt-free balance sheet.
- Cash Flows: Dividend yield of 0.45% is modest, signaling reinvestment focus.
💹 Valuation Indicators
- P/E Ratio: 83.1 vs Industry PE of 30.1 → highly overvalued.
- P/B Ratio: Current Price ₹1,343 / Book Value ₹694 ≈ 1.94 (reasonable premium).
- PEG Ratio: 6.96 → expensive relative to earnings growth.
- Intrinsic Value: Overvalued compared to fundamentals, trading on growth expectations and brand strength.
🏢 Business Model & Competitive Advantage
- Info Edge (Naukri.com) operates India’s leading online job portal with strong brand recognition.
- Network effect and dominant market share provide competitive advantage.
- Diversified investments in startups (Zomato, Policybazaar) add long-term optionality.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation only near ₹1,150–₹1,250.
- Long-Term Holding: Suitable for growth-oriented investors, but valuations are stretched; cautious allocation advised.
✅ Positive
- Strong quarterly profit rebound (PAT up 359%).
- Debt-free balance sheet.
- DII holdings increased (+2.65%).
⚠️ Limitation
- High P/E ratio (83.1) compared to industry average.
- Weak ROE (2.75%) and ROCE (4.91%).
- PEG ratio (6.96) suggests expensive valuation relative to growth.
📉 Company Negative News
- Decline in FII holdings (-2.66%).
- Stock trading below DMA 200 (₹1,390), showing medium-term weakness.
📈 Company Positive News
- Quarterly profits improved significantly.
- DII holdings increased, showing domestic institutional support.
- Strong brand positioning in online recruitment.
🏭 Industry
- Industry PE at 30.1 highlights Naukri’s premium valuation.
- Online recruitment sector benefits from digital adoption and rising employment demand.
- Peers trade at lower multiples, highlighting Naukri’s overvaluation.
🔎 Conclusion
Naukri (Info Edge) is a debt-free company with strong brand equity and diversified investments.
However, weak ROE/ROCE and high P/E/PEG ratios reflect stretched valuations.
Accumulation near ₹1,150–₹1,250 is recommended only for growth-focused investors willing to tolerate premium pricing and volatility.
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