Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Info Edge (INED.BO; Rs705.00; 3L)
Takeaways from Mumbai – Info Edge presented at our India Investor Conference
in Mumbai. Below are key takeaways.
Naukri continues to do well – Corporate collections grew ~48% YoY in the last
fiscal year – boding well for FY12 growth rates. The growth drivers going forward
should be: 1) addition of new customers; 2) price increases; and 3) upgrading
customers to higher value products. If the Indian economy continues to do well, the
recruitment segment will also perform well. With the traffic share still hovering
around the 60% mark, Naukri continues to be the preferred choice for corporates
taking the internet route to hire.
Real estate space doing well – Info Edge grew at ~70% YoY in the last fiscal.
Company gets a substantial portion of revenues from new home sales in
99acres.com. This segment broke even last year and has seen traffic share moving
up from ~35% levels to ~48% or so in the past few years. The market continues to
be very large in this segment.
Other segments still small – The other segments are still small, however. The
company plans to invest in the matrimony space (Jeevansaathi.com) and education
(Shiksha.com) to accelerate growth rates. With the recent ad burst in Shiksha,
traffic to the website has almost doubled.
Why still Sellers? – The company continues to grow at a decent pace. The internet
space has solid operating leverage and should play out in the coming quarters for
Info Edge. FY11 margins were depressed due to investments made in various loss
making entities. We expect decent growth in FY12, however, at ~40x FY12E EPS
we find it difficult to see upside.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Info Edge (INED.BO; Rs705.00; 3L)
Takeaways from Mumbai – Info Edge presented at our India Investor Conference
in Mumbai. Below are key takeaways.
Naukri continues to do well – Corporate collections grew ~48% YoY in the last
fiscal year – boding well for FY12 growth rates. The growth drivers going forward
should be: 1) addition of new customers; 2) price increases; and 3) upgrading
customers to higher value products. If the Indian economy continues to do well, the
recruitment segment will also perform well. With the traffic share still hovering
around the 60% mark, Naukri continues to be the preferred choice for corporates
taking the internet route to hire.
Real estate space doing well – Info Edge grew at ~70% YoY in the last fiscal.
Company gets a substantial portion of revenues from new home sales in
99acres.com. This segment broke even last year and has seen traffic share moving
up from ~35% levels to ~48% or so in the past few years. The market continues to
be very large in this segment.
Other segments still small – The other segments are still small, however. The
company plans to invest in the matrimony space (Jeevansaathi.com) and education
(Shiksha.com) to accelerate growth rates. With the recent ad burst in Shiksha,
traffic to the website has almost doubled.
Why still Sellers? – The company continues to grow at a decent pace. The internet
space has solid operating leverage and should play out in the coming quarters for
Info Edge. FY11 margins were depressed due to investments made in various loss
making entities. We expect decent growth in FY12, however, at ~40x FY12E EPS
we find it difficult to see upside.
No comments:
Post a Comment