NAUKRI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | NAUKRI | Market Cap | 62,343 Cr. | Current Price | 961 ₹ | High / Low | 1,550 ₹ |
| Stock P/E | 50.8 | Book Value | 536 ₹ | Dividend Yield | 0.62 % | ROCE | 4.75 % |
| ROE | 3.93 % | Face Value | 2.00 ₹ | DMA 50 | 1,002 ₹ | DMA 200 | 1,184 ₹ |
| Chg in FII Hold | -1.69 % | Chg in DII Hold | 1.60 % | PAT Qtr | 297 Cr. | PAT Prev Qtr | 282 Cr. |
| RSI | 47.8 | MACD | -19.4 | Volume | 99,11,007 | Avg Vol 1Wk | 41,01,496 |
| Low price | 915 ₹ | High price | 1,550 ₹ | PEG Ratio | 1.89 | Debt to equity | 0.01 |
| 52w Index | 7.33 % | Qtr Profit Var | 19.4 % | EPS | 85.4 ₹ | Industry PE | 25.5 |
📊 Financials: Info Edge (NAUKRI) reports quarterly PAT of ₹297 Cr, up from ₹282 Cr, showing steady earnings growth (+19.4%). ROE at 3.93% and ROCE at 4.75% are weak, reflecting poor efficiency despite profitability. Debt-to-equity ratio of 0.01 highlights a near debt-free balance sheet, ensuring financial stability. EPS of ₹85.4 supports earnings, though margins remain modest relative to valuation.
💹 Valuation: P/E ratio of 50.8 is significantly above industry average (25.5), suggesting premium valuation. Book value of ₹536 vs current price ₹961 shows the stock trades at a steep premium. PEG ratio of 1.89 indicates growth is priced in. Dividend yield of 0.62% provides limited income support. Intrinsic value appears lower than current market price, raising caution.
🏦 Business Model: Info Edge operates as India’s leading internet company with businesses in recruitment (Naukri.com), real estate (99acres), education (Shiksha), and investments in startups like Zomato. Its competitive advantage lies in brand recognition, diversified portfolio, and strong digital presence. However, weak efficiency metrics and high valuation limit overall health.
📈 Entry Zone: Safer entry near ₹900–930, closer to support levels. Current price reflects premium valuation. Long-term holding is suitable given strong brand positioning and diversified portfolio, but investors should be cautious of efficiency concerns.
Positive
- ✅ Strong quarterly PAT growth (+19.4%).
- ✅ Near debt-free balance sheet (Debt-to-equity 0.01).
- ✅ Diversified portfolio across recruitment, real estate, and education.
Limitation
- ⚠️ Very high P/E ratio (50.8) vs industry average (25.5).
- ⚠️ Weak ROE (3.93%) and ROCE (4.75%).
- ⚠️ Dividend yield of 0.62% offers limited income support.
Company Negative News
- 📉 FII holdings decreased (-1.69%), showing reduced foreign investor confidence.
- 📉 Efficiency metrics remain weak despite profitability.
Company Positive News
- 📈 DII holdings increased (+1.60%), reflecting strong domestic institutional support.
- 📈 Consistent profit growth boosts investor sentiment.
Industry
- 🌐 Internet services sector trades at average P/E of 25.5, far below Info Edge’s valuation.
- 🌐 Rising demand for digital platforms supports long-term growth.
- 🌐 Sector benefits from startup investments but faces volatility risks.
Conclusion
🔎 Info Edge (NAUKRI) is financially stable with strong brand positioning, diversified portfolio, and consistent profitability. However, weak efficiency and premium valuation limit upside potential. Entry near ₹900–930 offers better risk-reward balance. Long-term holding is suitable if efficiency improves and digital adoption continues to drive growth, but caution is warranted due to overvaluation.
For a sharper comparison, we could look at Justdial or IndiaMART to highlight differences in valuation, margins, and growth across India’s digital marketplace leaders.