Info Edge, a job search company with popular brand NAUKRI, is going to split its shares for the first time within two months. Info Edge has announced a split ratio 1:5. Brokerages have recommended BUY on Info Edge due to its better-than-expected performance in Q3FY25 results.

JM Financial and HDFC Securities are bullish on the stock, with the highest target price to be set at Rs 9,000.

Info Edge Share Price:

After market hours on February 6th, Info Edge's share price stood at Rs 8053.55 apiece on BSE, up by 1.4%. The company has a market cap of Rs 1,04,361.22 crore. The stock's 52-week high and low are Rs 9,194.95 and Rs 4,967.10 apiece, respectively.

YTD, Info Edge stock has dropped by nearly 8%. In a year, however, the stock gained by 49% so far.

Info Edge Stock Split:

Naukri has announced a stock split ratio of 1:5, which is for the first time by the company.

The 1:5 ratio meant sub-division/split of the existing 1 (one) equity share of the Company having a face value of Rs. 10/- (Rupees Ten only) each fully paid- -up, into 5 (five) equity shares having face value of Rs. 2/- (Rupees Two only) each, fully paid- up.

It said, "The Record Date for the sub-division/split of equity shares shall be decided after taking aforesaid approval of the shareholders of the Company and the same will be intimated in due course."

The reason behind the stock split is to enhance the liquidity of the Company's equity shares and to encourage participation of retail investors by making equity shares of the Company more affordable.

The company announced that the expected to complete stock split is within within 2 (two) months from the date of approval of the Shareholders.

BUY Info Edge Stock After Q3 Results?

JM Financial said, "INFOE reported better-than-expected operating performance in 3Q driven by margin beat. While standalone topline grew 12.8% YoY, broadly in-line JMFe, EBITDA was up 20.4% YoY, c.3% ahead of JMFe, as margin expanded 272bps YoY to 43.1% vs. JMFe of 41.7%. Earlier, in its pre-quarter update, the company had disclosed 15.8% YoY growth in standalone billings, the highest in the last 9 quarters, with recruitment billings growth accelerating to 15.2% YoY (14.0%/8.5% in 2Q/1QFY25)."

Further, JM's note added, "We see further scope for billings growth acceleration assuming peaking utilisation rates and increasing attrition rates in IT companies; continued accelerated hiring trends in GCC's and start-ups; and robust traction for adjacent businesses (iimjobs, Naukri Gulf and Naukri Fast Forward). Billings growth uptick in turn should support recruitment segment margin expansion. Our SOTP-based TP for INFOE is raised to INR 8,750 basis earnings upgrades and revision in target PER multiple of the recruitment segment to 55x from 52x."

Also, HDFC Securities note said, "We expect recruitment billings to grow at a ~17% CAGR from FY24-27E, which is higher than the pre-COVID average of ~13%. The margin for the recruitment segment will be in the ~58-60% range, provided billings growth is over 15% YoY. New monetization tools, cost control, and lower marketing spend have led to profitability improvement for Jeevansathi and 99acres platforms. Strong billings growth (+36% YoY) for Jeevansathi is a result of new pricing models, while 99acres billings growth of 16% is lower considering the buoyant real-estate market."

Lastly, HDFC's note said, "The growth in the recruitment segment is expected to continue, led by recovery in IT hiring, non-IT, and AI-based offerings. We increase our EPS estimate by ~1-2% and maintain our BUY rating with a SoTP-based TP of INR 9,000, valuing Naukri at 44x Dec-26E EV/EBITDA (60% of SoTP), 99acres/Jeevansathi+Shiksha at 5/4x P/S, while Zomato and Policybazaar have been assigned the market value. The core recruitment business is trading at 39/32x FY26/27E EV/EBITDA.

About Info Edge:

Info Edge is a consumer internet company with leading presence in it's product portfolio that spans over recruitment, matrimony, real estate & education in the space of online classifieds. This is a team of people who has inspired a multitude of internet start- ups and continues to show others on how it's done!Pooja Jaiswar Goodreturns