Commenting on the results, the company's CFO Chintan Thakkar said “We continue to evaluate the unfolding situation of the pandemic. Work from home and business continuity plan is operating satisfactorily. The Billings are down in Q1FY’21 on YoY basis as a result of the nationwide lockdown. However, the immediate impact on the Revenue tends to be lower as we recognize the Revenue over the tenure of the contract.".
Info Edge (India)
Limited is among the leading internet companies in India. It runs leading internet businesses - Naukri.com, Jeevansathi.com, 99acres.com, and Shiksha.com among others.
In a recent report, HSBC valued the company's share in food delivery app Zomato at $1.1 billion. Besides, in a blue-sky scenario, India food delivery could be valued at $30 billion in the long term, implying Info Edge’s share in Zomato at $3.5 billion.
"Among all the potential positive triggers for the IE’s share, Zomato is the most critical. While other companies such as Naukri and Policybazaar are great assets for IE, Zomato can significantly impact it’s valuation in the coming years," the report said. It said this is an increase of $2.4 billion or 45 per cent of Info Edge's market cap. In that scenario, Zomato could be valued at $15 billion.
Analysts at Axis Capital maintain 'ADD' rating on the stock and see recovery from Q3FY21 for the company.
"Q1 billing was hit by Covid-19 which may impact Q2 revenue. However, we expect gradual recovery from Q3 led by pickup in billing, network effect benefit with leadership in recruitment and 99acres, and increasing internet penetration. Investment in start-ups at higher valuation may provide upside. We see runway for growth in recruitment and increase its multiple, as traffic attains pre-Covid level in Q3. Maintain ADD with SoTP-based TP of Rs 3,570 (vs Rs 3,115), as we increase EBITDA and valuation for Zomato/PolicyBazaar," the brokerage said in a result update.
At 10:30 am, the stock was trading 1.23 per cent higher at Rs 3,332.45 as compared to 0.6 per cent gain in the benchmark S&P BSE Sensex.Around 3 lakh shares have changed hands on the NSE and BSE so far