NAUKRI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | NAUKRI | Market Cap | 63,402 Cr. | Current Price | 978 ₹ | High / Low | 1,550 ₹ |
| Stock P/E | 58.3 | Book Value | 694 ₹ | Dividend Yield | 0.61 % | ROCE | 4.91 % |
| ROE | 2.75 % | Face Value | 2.00 ₹ | DMA 50 | 1,109 ₹ | DMA 200 | 1,282 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.82 % | PAT Qtr | 282 Cr. | PAT Prev Qtr | 297 Cr. |
| RSI | 36.0 | MACD | -49.5 | Volume | 20,01,415 | Avg Vol 1Wk | 19,40,987 |
| Low price | 930 ₹ | High price | 1,550 ₹ | PEG Ratio | 4.88 | Debt to equity | 0.01 |
| 52w Index | 7.70 % | Qtr Profit Var | 16.5 % | EPS | 84.5 ₹ | Industry PE | 19.9 |
💹 Revenue & Profitability: Info Edge (NAUKRI) reported PAT of ₹282 Cr this quarter, slightly lower than ₹297 Cr previously (-16.5%). EPS at ₹84.5 reflects strong earnings power, though profitability has shown some decline.
📊 Valuation: Current P/E of 58.3 is significantly higher than industry average (19.9), suggesting premium valuation. Book value ₹694 vs CMP ₹978 shows the stock trades at a premium. PEG ratio of 4.88 indicates growth is priced expensively relative to earnings.
💰 Return Metrics: ROE at 2.75% and ROCE at 4.91% are weak, highlighting inefficiency despite strong revenue base. Dividend yield of 0.61% provides minimal income support.
⚖️ Debt Profile: Debt-to-equity ratio of 0.01 highlights a virtually debt-free balance sheet, ensuring financial stability.
📈 Technical Zone: CMP ₹978 is below DMA 50 (₹1,109) and DMA 200 (₹1,282), indicating bearish momentum. RSI at 36 suggests oversold conditions, with support near ₹930 and resistance at ₹1,550.
🏦 Business Model & Advantage: Info Edge operates in online classifieds, recruitment (Naukri.com), real estate (99acres), education (Shiksha), and investments in startups like Zomato. Competitive advantage lies in brand recognition and diversified portfolio, though profitability remains under pressure.
🎯 Entry Zone: Entry advisable between ₹950–980 for accumulation. Long-term holding is viable for investors seeking exposure to India’s digital ecosystem, though valuations are stretched and return ratios are weak.
Positive
- Strong EPS (₹84.5)
- DII holdings increased (+0.82%)
- Diversified portfolio across recruitment, real estate, and startups
- Debt-free balance sheet
Limitation
- High P/E (58.3) vs industry average (19.9)
- Weak ROE (2.75%) and ROCE (4.91%)
- PEG ratio of 4.88 indicates expensive growth
- Bearish technical trend below DMA levels
Company Negative News
- FII holdings declined (-0.67%)
- Quarterly PAT declined (-16.5%)
Company Positive News
- DII holdings increased (+0.82%)
- Strong brand recognition in recruitment and classifieds
- Exposure to high-growth startups like Zomato
Industry
- Industry P/E at 19.9, much lower than NAUKRI’s 58.3
- Digital classifieds and recruitment sector growing rapidly
- Startups and online platforms driving long-term demand
Conclusion
📌 Info Edge (NAUKRI) is fundamentally stable with strong brand positioning and diversified portfolio, but weak ROE/ROCE and high valuation limit attractiveness. Entry near ₹950–980 offers margin of safety. Long-term holding is suitable for investors seeking exposure to India’s digital ecosystem, though returns may be constrained until profitability improves.
Would you like me to extend this into a peer benchmarking overlay comparing Info Edge with JustDial, IndiaMART, and Quikr to highlight relative valuation and efficiency in the digital classifieds and recruitment sector?