NAUKRI - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Analysis: Info Edge (India) Ltd. (NAUKRI)

Investment Rating: 3.1

🧮 Fundamental Snapshot

ROE: 2.73% and ROCE: 5.28% — notably weak, especially for a tech-forward company. Indicates poor capital efficiency.

EPS: ₹14.8 and P/E: 103 — expensive valuation without earnings strength; pricing seems speculative.

PEG Ratio: -3.56 — negative PEG signals earnings contraction or unreliable forecasts.

Debt-to-Equity: 0.01 — virtually debt-free, offering financial flexibility.

Dividend Yield: 0.43% — token income, not enough to sway income-focused investors.

📌 While quarter-on-quarter PAT jumped (+271%), fundamentals don’t yet justify the premium multiples. Valuation currently outpaces performance.

📉 Technical & Trend Insights

RSI: 45.4 — neutral zone; momentum lacking but not oversold.

MACD: -9.31 — bearish trend continues, suggesting caution.

Trading below DMA 50 & DMA 200 — confirms sustained downtrend.

Volume slightly below average — tepid market interest.

🎯 Ideal Entry Price Zone: ₹1,325 – ₹1,390 A technical pullback toward this zone offers better valuation comfort amid bearish sentiment.

🧭 Holding Strategy / Exit Plan

✅ Hold Strategy

Holding Period: 1–2 years (only if bullish on digital classifieds + B2B platforms)

Maintain holding only if

ROE improves above 10% over 2–3 quarters

EPS grows to ₹20+

PAT sustains above ₹400 Cr with operating margin growth

PEG ratio rises toward positive territory (<2.0)

🚪 Exit Triggers

Partial Exit: Near ₹1,750–₹1,800 on sentiment-driven bounce without earnings backup

Full Exit If

ROE stagnates below 5%

PEG remains negative across multiple quarters

EPS fails to grow despite higher valuations

Price falls below ₹1,300 with volume spike and no recovery momentum

NAUKRI might suit those with long-term conviction in digital B2B platforms and India's recruitment tech landscape, but current financials suggest it's a speculative hold at best. Want help comparing it with newer tech players or portfolio alternatives like IndiaMART or Just Dial? I can lay out a performance dashboard next. 🧠📉

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