"We believe the two main growth drivers for online food aggregators going forward will be their ability to 1) penetrate further in the large long-tail of lower tier cities and 2) leverage the cloud kitchens that offer a differentiating proposition of standardised/curated food meals at reasonable prices. Further, both these factors also tend to offer better business economics, which is crucial to the growing discussion on ensuring sustainable profitability," said analysts at JM Financial in a rpeort dated August 10.
The online food delivery market for aggregators in India in gross merchandise value (GMV) terms was worth $ 3.6bn in FY20. We expect it to grow to $8.6bn by FY25 (CAGR of 19%), despite the likely decline in the market size in FY21 due to the on-going pandemic. This growth is likely to be driven by an increase in both volume (over 12 per cent CAGR) as well as average order value (over 7 per cent CAGR), it said.
In an August 30 report, Dealmoney Financial Services said Info Edge is one of the very few profitable pure play internet companies in the country.
"We remain bullish on Info Edge limited. Given the valuations are lofty due to the recent run up we believe the above triggers can help in capturing decent return. We recommend buy on Info Edge India Limited with a price target of Rs 3,760," it said.
The Board is scheduled to meet on September 7 to approve the financial result for quarter ended June 30, 2020.
In August, the Fund Raising Committee of Info Edge determined and approved the issue price for 60,67,961 Equity Shares to be allotted to eligible qualified institutional buyers at a price of Rs 3,090 per equity share (including a share premium of Rs 3,080 per equity share), which includes a discount of 2.74 per cent (i.e. Rs 87.18 per equity share), to the floor price of Rs 3,177.18 per equity share.
At 1:50 pm, the stock was ruling 4.6 per cent higher at Rs 3,452 per share, as against 0.03 per cent rise in the S&P BSE Sensex.