Monday 26 September 2011

Buy Info Edge India; target of Rs 788: Firstcall Research


Firstcall Research is bullish on Info Edge India and has recommended buy rating on the stock with a target of Rs 788 in its September 14, 2011 research report.
“Info Edge (India) incorporated in 1995, owns one of the leading job portals naukri.com. The company is a leading provider of various portals related to online recruitment, matrimonial, real estate and education classifieds and related services in India. Company has a network of 67 offices spread across in 41 cities in India. Company also operates internationally through 2 offices in Dubai, 1 in Bahrain and 1 in Riyadh. These international offices are engaged in business of sales, marketing and payment collection activities of company’s business division. The company has employee strength of 1,798 people. Info Edge (India) owns four subsidiaries namely Naukri Internet Services, Jeevansathi Internet Services, Info Edge (India) Mauritius and Allcheckdeals India.”
“Info Edge (India) Ltd announced a good increase in standalone net profit for the quarter ended June 2011. During the quarter, the profit of the company rose 48.31% to Rs 256.12 million from Rs 172.69 million in the same quarter last year. Net sales for the quarter for the quarter rose 31.54% to Rs.866.59 million, while total income for the quarter rose 30.49% to Rs 945.22 million, when compared with the prior year period. It reported earnings of Rs 4.69 a share during the quarter June.”
“At the current market price of Rs.685.00, the stock is trading at 36.53 x FY12E and 32.26 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.18.75 and Rs.21.24 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 26% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 23.51 x for FY12E and 20.76 x for FY13E. Price to Book Value of the stock is expected to be at 6.65 x and 5.51 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 788 for medium to long term investment,” says Firstcall Research report.

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