Info Edg.(India) (NAUKRI)
Fast GrowerFairStock Score: 50/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,343 |
| Market Cap | ₹86,991.16 Cr |
| P/E Ratio | 54.35 |
| ROCE | 3% |
| ROE | 3.86% |
| Dividend Yield | 1.07% |
| Profit Growth | 50.7% |
| Debt/Equity | 0.01 |
| Sales Growth | 11.4% |
| Free Cash Flow | ₹58 Cr |
| Promoter Holding | 37.59% |
| 52-Week Range | ₹909.2 — ₹1,433.6 |
| Sector | Retailing |
| Book Value | ₹585.32 |
Strengths
- Dominant brand and moat in online recruitment through Naukri
- Near-zero leverage with D/E of 0.01
- Healthy historical growth: 5-year revenue CAGR of 20.37% and latest quarter sales of ₹819 Cr
- Promoter holding of 37.59% aligns long-term interests
- Strong Piotroski F-Score of 8/9 implies improving fundamentals
Concerns
- Valuation is rich: P/E of 49.40 and EV/EBITDA of 56.15 with no margin of safety versus Graham Number of ₹502.63 and DCF value of ₹19.78
- Poor capital efficiency: ROE of 3.86% and ROCE of 3.00%
- Earnings quality is weak: FCF of ₹58 Cr versus net profit of ₹317 Cr
- Altman Z-Score of 1.89 points to potential financial stress despite low debt
AI Analysis
At ₹1,018, Info Edge commands a market cap of ₹66,761 crore, yet the business earns only modest returns on equity—3.86%—and returns on capital of 3.00%. That is not the hallmark of a franchise that justifies a 49.40 times earnings multiple. The Naukri brand and its dominance in online recruitment give it a genuine moat: near-zero debt with D/E of 0.01, promoter holding of 37.59%, and steady top-line expansion with a 5-year revenue CAGR of 20.37% and latest quarter sales of ₹819 crore. Reported profit growth of 140.98% sounds impressive, but free cash flow of just ₹58 crore against net profit of ₹317 crore makes me question the quality of earnings; profits may be tied up in investments or working capital. Benjamin Graham would demand a margin of safety, and there is none: the Graham number is ₹502.63, and the provided DCF estimate stands at ₹19.78—far below the market price. With EV/EBITDA at 56.15 and a PEG of 1.09, the market is paying a heavy price for growth. The Piotroski F-Score of 8/9 shows a healthy balance sheet, but an Altman Z-Score of 1.89 and an ROE below 4% warn of fragility if growth slows. A wonderful business can still be a poor investment at the wrong price. I would wait patiently for a price closer to intrinsic value.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer