Objective: ₹ 7,800
CMP: ₹ 6,544.75
Info Edge in its commercial update prior to the results mentioned that independent Billings grew by 19 percent year-on-year in the fourth quarter-fy25, ahead of JMFE or 18 percent, in the back of invoices better than expected in all report segments. Recruitment billings grew by 18.4 percent year -on -year, the highest in the last 10 quarters, despite a relatively difficult base.
As in the last quarters, we believe that growth was wide base throughout the IT and not it. We observe that the 4Q is seasonally a very strong quarter for the recruitment business, which leads us to believe that the improvement of the trend was directed by a combination of a strong demand for renewal and unique additions of customers. In addition, the growth of 99acres invoices was the highest in the last 4 quarters with 21.9 percent year -on -year.
Other segments, which includes Jeevansathi and Shiksha, also saw a healthy growth of 18.7 percent of Yoy Billings. However, we moderate our Billings growth forecast for the recruitment segment around fiscal year 26/27 to 14.5 percent of 18 percent before, due to the growing uncertainty about its demand for hiring.
Our Mar’26 TP based on SOTP is also reviewed up to ₹ 7,800, thoroughly of multiple lower objectives for the recruitment business and the recent correction in the price of the shares of the inverse companies (Zomato and PB Fintech), valued in Holdco without changes.
Posted on April 11, 2025