Bernstein bullish on Info Edge, upgrades price target

Info Edge reported steady growth for the first quarter of fiscal year 2025, primarily driven by its recruitment segment. Naukri’s billings climbed 9% year-on-year, buoyed by increased hiring in GCC and consulting sectors.

The real estate segment, 99 Acres, also performed strongly, with revenue surging 19.5% year-on-year.

Bernstein has raised its price target to 7,940 Indian rupees, implying a potential upside of 10%. The brokerage attributes this to the recovery in IT hiring, which is expected to boost Naukri’s performance.

Additionally, the stabilization of the housing market is expected to benefit 99 Acres.

“We expect continued improvement in recruitment billings & higher value of investments (Zomato/Policybazaar) to be the key drivers for stock performance,” the analysts said.

While the startup investment valuation has been adjusted downwards, the recovery in IT billings and the strong performance of other segments remain key catalysts for the stock.

Bernstein’s bullish stance on Info Edge is underpinned by the expectation of continued growth in the recruitment business, stabilization of the real estate market, and the overall strength of the company’s investment portfolio.