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NAUKRI - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.5

Last Updated Time : 19 Mar 26, 07:10 pm

Fundamental Rating: 3.5

Stock Code NAUKRI Market Cap 64,474 Cr. Current Price 992 ₹ High / Low 1,550 ₹
Stock P/E 59.2 Book Value 694 ₹ Dividend Yield 0.60 % ROCE 4.91 %
ROE 2.75 % Face Value 2.00 ₹ DMA 50 1,121 ₹ DMA 200 1,288 ₹
Chg in FII Hold -0.67 % Chg in DII Hold 0.82 % PAT Qtr 282 Cr. PAT Prev Qtr 297 Cr.
RSI 37.7 MACD -55.8 Volume 18,47,575 Avg Vol 1Wk 20,43,576
Low price 930 ₹ High price 1,550 ₹ PEG Ratio 4.96 Debt to equity 0.01
52w Index 9.93 % Qtr Profit Var 16.5 % EPS 84.5 ₹ Industry PE 20.8

📊 Financial Overview

  • Revenue & Profitability: PAT declined slightly from ₹297 Cr. to ₹282 Cr. (QoQ), showing mild earnings pressure.
  • Margins: ROE at 2.75% and ROCE at 4.91% are weak, reflecting poor efficiency and profitability.
  • Debt: Debt-to-equity ratio of 0.01 indicates a nearly debt-free balance sheet.
  • Cash Flow: EPS of ₹84.5 is decent, but overall returns remain modest relative to valuation.

💹 Valuation Metrics

  • P/E Ratio: 59.2 vs Industry PE of 20.8 → significantly overvalued compared to peers.
  • P/B Ratio: Price ₹992 vs Book Value ₹694 → trading at a premium.
  • PEG Ratio: 4.96 → suggests valuation is expensive relative to growth.
  • Intrinsic Value: Current valuation looks stretched; fundamentals do not justify high multiples.

🏢 Business Model & Competitive Advantage

  • Info Edge (India) Ltd. (NAUKRI) operates in online recruitment, classifieds, and digital services.
  • Competitive advantage lies in strong brand recognition, dominant market share in online job portals, and diversified digital investments.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: ₹950–1,000 range looks safer given overvaluation and technical weakness.
  • Long-Term Holding: Suitable for investors seeking exposure to digital recruitment and classifieds, but monitor profitability consistency and valuation risks.

✅ Positive

  • Debt-free balance sheet.
  • EPS of ₹84.5 supports shareholder value.
  • DII holdings increased (+0.82%), showing domestic institutional support.

⚠️ Limitation

  • High P/E ratio (59.2) compared to industry average.
  • Weak ROE (2.75%) and ROCE (4.91%).
  • PEG ratio (4.96) indicates expensive valuation relative to growth.

📉 Company Negative News

  • FII holdings decreased (-0.67%).
  • Quarterly PAT declined slightly (₹297 Cr. to ₹282 Cr.).
  • Stock trading below DMA 50 & DMA 200, showing bearish technical trend.

📈 Company Positive News

  • DII inflows (+0.82%) reflect rising domestic confidence.
  • Debt-free status provides financial stability.

🏦 Industry

  • Industry PE at 20.8 highlights sector trades at much lower multiples than NAUKRI.
  • Digital recruitment and classifieds sector growth supported by rising internet penetration and demand for online services.

🔎 Conclusion

  • NAUKRI is fundamentally stable with debt-free status but faces weak profitability and stretched valuation.
  • Entry around ₹950–1,000 is favorable for long-term investors.
  • Hold for exposure to digital recruitment growth, but monitor earnings consistency and valuation risks closely.

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