NAUKRI - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of Info Edge (India) Ltd (NAUKRI), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and factored in recent quarterly results, stock split, and analyst sentiment as of September 2025.

📊 Fundamental Analysis of Info Edge (India) Ltd (NAUKRI)

🔍 Core Financials

Profitability

PAT Qtr: ₹260 Cr vs ₹249 Cr — steady growth, with YoY improvement of 11.8%.

EPS: ₹12.4 — modest, especially given the high valuation.

ROE: 2.75%, ROCE: 4.91% — weak capital efficiency for a tech-driven business.

Leverage & Liquidity

Debt-to-equity: 0.01 — virtually debt-free, excellent financial resilience.

Dividend Yield: 0.43% — low, but consistent; ₹3.60/share dividend declared in May 2025

1

.

Cash Flow & Stability

Revenue rose from ₹676.71 Cr (June 2024) to ₹790.86 Cr (June 2025)

1

.

Net profit for FY25 reached ₹1,432.89 Cr, up from ₹272.81 Cr in FY24

1

.

Stock split in May 2025 (₹10 to ₹2 face value) improved liquidity

1

.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 110 Extremely overvalued vs industry PE of 29.0

P/B Ratio ~3.24 Reasonable given book value of ₹428

PEG Ratio 9.22 Very high — growth not justifying price

Intrinsic Value ~₹1,250–₹1,300 Slightly below current price — limited upside

🌐 Business Model & Competitive Edge

Segment Focus: Online classifieds — recruitment (Naukri), real estate (99acres), matrimony (Jeevansathi), and education (Shiksha).

Moat: Market leader in job listings; diversified digital portfolio.

Growth Drivers

Strong brand equity and network effects in Naukri.com..

ESOP allotments and platform upgrades signal long-term investment in talent and tech

1

.

Debt-free status and ₹42,771 Cr in total assets as of March 2025

2

.

📈 Technical & Entry Guidance

Current Price: ₹1,385

DMA 50/200: ₹1,384 / ₹1,421 — trading below long-term average, indicating weakness.

RSI: 53.3 — neutral zone.

MACD: -3.28 — bearish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹1,300–₹1,350 — near support and intrinsic value.

Stop Loss: ₹1,250

Target: ₹1,530–₹1,580 in medium term (based on analyst target of ₹1,534

3

)

🕰️ Long-Term Holding Outlook

Hold if invested: Strong brand, zero debt, and digital moat support long-term value.

Buy on dips: Preferably near ₹1,325 zone.

Growth Triggers: Platform monetization, ESOP-driven innovation, and sector recovery.

⭐ Fundamental Rating

3.9

1

Moneycontrol

2

NewsBytes

3

trendlyne.com

Edit in a page