Stock in Action – RCF
by
Tanushree Jaiswal
24th May 2024
Stock to Watch – Naukri
Tanushree Jaiswal
Tanushree Jaiswal
17th May 2024 - 04:17 pm
Info Edge Stock Movement of Day
• Naukri stock price opened at ₹6043.85 apiece, jumping 8% in early trade following Q4 results.
• Info Edge India reported consolidated net profit of ₹88 cr for Q4FY24, significant turnaround from previous year's loss.
• Naukri.com is key driver behind Info Edge's robust performance, contributing significantly to revenue growth.
• Info Edge Q4 results revealed final dividend of ₹12 per share for FY24, reflecting company's strong financial health.
• 99acres.com performance improved significantly, with 22.5% year-on-year revenue increase in Q4.
• Jeevansathi.com growth was impressive, with 29.2% year-on-year revenue increase, reflecting strong market positioning.
• Shiksha.com revenue increased by 22.2% year-on-year, showcasing its growing influence in education sector.
• Naukri market performance has been exceptional, with stock hitting 52-week high of ₹6,355 on BSE.
• Naukri billing growth for recruitment business showed early signs of recovery, particularly in IT sector.
Why Naukri Share is in Buzz?
Naukri share price has been making headlines recently due to its impressive Q4 FY24 results & subsequent positive outlook provided by various brokerage firms. Info Edge India, which owns Naukri.com, reported significant financial improvements, driving its share price up by 8% in early trade on May 17, 2024. surge in Naukri's share price is attributed to company's strong consolidated net profit, rise in revenue from its operations, & improved performance in both its recruitment & non-recruitment businesses.
Highlights of Info Edge Q4 of FY24 Financial Performance
Naukri share, Info Edge India reported consolidated net profit of ₹88 cr for Q4 FY24, significant recovery from loss of ₹503.2 cr in same quarter last year. However, net profit was lower on quarter-on-quarter basis compared to ₹119.4 cr in Q3 FY24.
Naukri Consolidated revenue from operations for Q4 FY24 rose by 8.7% year-on-year to ₹657.4 cr, up from ₹604.8 cr in Q4 FY23. On quarterly basis, revenue increased from ₹627.1 cr in Q3 FY24. recruitment business witnessed 3.4% year-on-year growth, while non-recruitment business verticals, including 99acres.com, Jeevansathi.com, & Shiksha.com, saw substantial year-on-year growth of 22.5%, 29.2%, & 22.2% respectively.
Naukri Parent Info Edge Q4 Financial Performance
| Parameter | Q4 FY24 | Q3 FY24 | Q4 FY23 | YoY Growth | QoQ Growth |
| Revenue (₹ cr) | 657.4 | 627.1 | 604.8 | 8.7% | 4.8% |
| EBITDA Margin (%) | 40.6 | 40.4 | - | - | 0.2pp |
| Net Profit (₹ cr) | 88.0 | 119.4 | -503.2 | - | -26.3% |
| Recruitment Revenue (₹ cr) | 480.5 | - | - | 4.5% | - |
| Real Estate Revenue (₹ cr) | 92.6 | - | - | 22.6% | - |
| Other Revenue (₹ cr) | 84.3 | - | - | 21.1% | - |
• Naukri consolidated net profit for Q4FY24 was ₹88 cr, stark contrast to ₹503.2 cr loss in same quarter last year.
• Naukri revenue growth was driven by both recruitment & non-recruitment businesses, with notable contributions from 99acres.com, Jeevansathi.com, & Shiksha.com.
• Info Edge recruitment business witnessed 3.4% year-on-year revenue growth in Q4, reflecting strong market demand.
• Info Edge non-recruitment business segments, including 99acres.com, Jeevansathi.com, & Shiksha.com, showed robust performance with double-digit growth.
• Brokerage firms target price for Info Edge stock has been raised, with firms like Nuvama & JM Financial maintaining 'buy' rating.
• Naukri dividend announcement of ₹12 per share for FY24 underscores company’s commitment to delivering shareholder value.
• Naukri EBITDA margin improved quarter-on-quarter, reflecting efficient cost management & strong revenue streams.
• Naukri IT recruitment recovery was highlighted by double-digit growth in IT billings, signaling positive market trend.
• Naukri financial health is robust, with 13.2% year-over-year growth in cash from operations, reaching cash balance of ₹4,191 cr as of March 31, 2024.
Quarterly Results
Why It Continues to Remain Our Preferred Bet in Technology Space
1. Info edge share price continues to attract investor interest due to its consistent revenue growth & robust financial health. Naukri stock price benefits from strong billing growth in its core recruitment business & significant improvements in non-recruitment segments, including real estate, matrimony, & education.
2. Naukri share price is further supported by positive outlooks from brokerage firms such as Nuvama Wealth Management & JM Financial, which have raised their target prices to ₹7,050 & ₹7,000 respectively. Naukri stock price reflects company's strategic reduction in marketing expenses, improvement in EBITDA margins, & signs of recovery in IT recruitment business.
3. Info Edge share price reflects confidence of investors in Info Edge's ability to leverage its strong cash flows for future investments & shareholder returns. company's robust financial performance, coupled with favourable market environment, makes Naukri stock price compelling investment opportunity.
4. Naukri share price has surged by 49% over last year, significantly outperforming Sensex, which gained 19% during same period. This outperformance & positive financial indicator ensure that Naukri stock price remains preferred bet in tech-driven recruitment & real estate sectors.
Info Edge (India) Ltd Strength
• Naukri is almost debt free.
• Info Edge has delivered good profit growth of 55.9% CAGR over last 5 years.
Info Edge (India) Ltd Weakness
• Info Edge Stock is trading at 2.67 times its book value.
• Naukri has a low return on equity of 5.92% over last 3 years.
• Info Edge earnings include an other income of Rs.303 Cr.
Conclusion
Naukri share price surged 49% over last year, significantly outperforming equity benchmark Sensex. Q4 FY24 financial performance of Info Edge saw 8.7% year-on-year increase in consolidated revenue from operations.
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