⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
NAUKRI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental 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.