⚠ 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: 3.4
| Stock Code | NAUKRI | Market Cap | 81,367 Cr. | Current Price | 1,255 ₹ | High / Low | 1,637 ₹ |
| Stock P/E | 77.6 | Book Value | 694 ₹ | Dividend Yield | 0.48 % | ROCE | 4.91 % |
| ROE | 2.75 % | Face Value | 2.00 ₹ | DMA 50 | 1,329 ₹ | DMA 200 | 1,373 ₹ |
| Chg in FII Hold | -0.67 % | Chg in DII Hold | 0.82 % | PAT Qtr | 297 Cr. | PAT Prev Qtr | 260 Cr. |
| RSI | 36.9 | MACD | -21.4 | Volume | 5,12,292 | Avg Vol 1Wk | 16,12,462 |
| Low price | 1,151 ₹ | High price | 1,637 ₹ | PEG Ratio | 6.50 | Debt to equity | 0.01 |
| 52w Index | 21.3 % | Qtr Profit Var | 359 % | EPS | 83.8 ₹ | Industry PE | 27.6 |
📊 Core Financials
- Revenue & Profitability: PAT improved from 260 Cr. to 297 Cr. QoQ (+359% variation), showing strong rebound in earnings.
- Margins: ROE at 2.75% and ROCE at 4.91% are weak, reflecting poor efficiency despite profitability growth.
- Debt: Debt-to-equity ratio of 0.01 highlights a virtually debt-free balance sheet, ensuring financial stability.
- Cash Flow: Dividend yield of 0.48% provides minimal shareholder reward.
💹 Valuation Indicators
- P/E Ratio: 77.6 vs Industry PE of 27.6 → significantly overvalued compared to peers.
- P/B Ratio: Current Price (1,255 ₹) / Book Value (694 ₹) ≈ 1.81, reasonable relative to book value.
- PEG Ratio: 6.50 suggests valuation is stretched relative to growth prospects.
- Intrinsic Value: Current price near support (1,151 ₹) offers limited downside, but upside capped by high valuation multiples.
🏦 Business Model & Competitive Advantage
- Info Edge (NAUKRI) operates India’s leading online job portal, with diversified interests in education, real estate, and startups.
- Competitive advantage lies in strong brand recognition, dominant market share in online recruitment, and strategic investments in high-growth ventures.
- Overall health is stable financially, but valuation multiples remain excessive relative to industry benchmarks.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer entry between 1,150 ₹ – 1,200 ₹, near support levels.
- Long-Term Holding: Suitable for growth-oriented investors betting on digital recruitment and portfolio investments, but caution advised due to high P/E and weak return ratios.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Strong PAT growth (+359% QoQ).
- DII holdings increased (+0.82%), showing domestic institutional confidence.
⚠️ Limitation
- High P/E (77.6) compared to industry average (27.6).
- Weak ROE (2.75%) and ROCE (4.91%).
- PEG ratio (6.50) indicates valuation mismatch with growth.
- Dividend yield of 0.48% offers limited shareholder reward.
📉 Company Negative News
- FII holdings decreased (-0.67%), showing reduced foreign investor confidence.
- Stock trading below DMA 50 (1,329 ₹) and DMA 200 (1,373 ₹) indicates bearish technicals.
📈 Company Positive News
- PAT improved QoQ, showing strong earnings recovery.
- DII holdings increased, reflecting domestic support.
🏭 Industry
- Industry PE at 27.6 is much lower than NAUKRI’s PE, highlighting overvaluation.
- Digital recruitment sector growth driven by rising employment demand and online adoption.
- NAUKRI benefits from dominant market share and diversified portfolio investments.
🔎 Conclusion
- NAUKRI offers strong brand presence and consistent profitability growth, supported by a debt-free balance sheet.
- Valuation is stretched compared to industry peers, with weak return ratios limiting attractiveness.
- Best suited for speculative growth investors entering near 1,150–1,200 ₹, while conservative investors should wait for valuation correction.