NAUKRI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | NAUKRI | Market Cap | 63,082 Cr. | Current Price | 973 ₹ | High / Low | 1,550 ₹ |
| Stock P/E | 58.0 | Book Value | 694 ₹ | Dividend Yield | 0.62 % | ROCE | 4.91 % |
| ROE | 2.75 % | Face Value | 2.00 ₹ | DMA 50 | 1,047 ₹ | DMA 200 | 1,222 ₹ |
| Chg in FII Hold | -1.69 % | Chg in DII Hold | 1.60 % | PAT Qtr | 282 Cr. | PAT Prev Qtr | 297 Cr. |
| RSI | 40.2 | MACD | -6.51 | Volume | 14,71,221 | Avg Vol 1Wk | 16,24,229 |
| Low price | 930 ₹ | High price | 1,550 ₹ | PEG Ratio | 4.86 | Debt to equity | 0.01 |
| 52w Index | 6.84 % | Qtr Profit Var | 16.5 % | EPS | 84.5 ₹ | Industry PE | 26.6 |
Core Financials:
Info Edge (NAUKRI) shows weak fundamentals. ROE is low at 2.75% and ROCE at 4.91%, reflecting poor efficiency. EPS at ₹84.5 is decent, but quarterly PAT declined slightly (₹282 Cr vs ₹297 Cr, -5%). Debt-to-equity is negligible at 0.01, highlighting a debt-free balance sheet.
Valuation:
Stock P/E of 58.0 is much higher than industry average (26.6), suggesting overvaluation. PEG ratio of 4.86 highlights stretched growth expectations. Price-to-book is ~1.40, reasonable, but intrinsic value is undermined by weak profitability. Dividend yield of 0.62% provides minimal income support.
Business Model & Health:
NAUKRI operates as India’s leading online recruitment platform, benefiting from strong brand equity and digital adoption. Competitive advantage lies in its dominant market share and diversified portfolio (real estate, education, matrimony). However, profitability metrics remain weak, and valuations are stretched relative to peers.
Entry Zone:
Ideal entry zone: ₹950–₹1,000. Current price ₹973 is near fair entry. Long-term holding is viable only if profitability improves and valuations normalize.
---
Positive
- Debt-free balance sheet (0.01 debt-to-equity)
- EPS at ₹84.5 supports valuation base
- DII holdings increased (+1.60%)
- Strong brand equity and market leadership
Limitation
- High P/E (58.0 vs industry 26.6)
- Weak ROE (2.75%) and ROCE (4.91%)
- PEG ratio (4.86) indicates overvaluation
- Dividend yield negligible (0.62%)
- RSI 40.2 and MACD -6.51 show bearish momentum
Company Negative News
- Quarterly PAT decline (₹282 Cr vs ₹297 Cr)
- Weak efficiency metrics despite scale
- FII holdings reduced (-1.69%)
Company Positive News
- DII confidence improved (+1.60%)
- Strong brand positioning in recruitment sector
- Diversified portfolio across digital platforms
Industry
Digital recruitment and classifieds sector trades at industry P/E of 26.6, supported by hiring demand and digital adoption. NAUKRI trades at a premium, reflecting brand strength but weak profitability compared to peers.
Conclusion
NAUKRI is overvalued with weak fundamentals but strong brand positioning. Rating: 3.4. Entry near ₹950–₹1,000 is preferable. Long-term holding is risky unless profitability improves. Exit strategy around ₹1,450–₹1,500 if fundamentals stagnate.
Would you like me to also prepare a swing trade overlay HTML report for NAUKRI (support/resistance, RSI/MACD zones, intraday entry/exit) so you can integrate it with your trading workflow templates?