JM Financial has maintained its “buy” call on Info Edge (India) with a revised target price of Rs 7,800, down from Rs 8,750 earlier. The company’s current market price is Rs 6,381.35. Info Edge (India) is a large-cap company operating in the services sector and has a market capitalization of Rs 82,311.83 crore.

In its latest quarterly earnings, the company reported a consolidated total income of Rs 909.48 crore, down 0.60% from the previous quarter, but up 37.84% from the same quarter last year. The company’s net profit after tax was Rs 294.22 crore.

JM Financial made some changes to its standalone FY26-27 EPS forecast, reducing billings growth expectations in the recruitment segment, but offsetting this by improving trends in 99acres and other segments. The brokerage continues to use the SOTP valuation method to derive a March 2026 fair value of Rs 7,800, with a target multiple for the recruitment segment lowered from 55x to 50x.

The target price also reflects corrections in the market price of listed investee companies (Zomato and PB Fintech). The target price implies a FY27 PER valuation of 49x for the standalone business.

As of December 31, 2024, promoters held 37.63% stake in the company, while FIIs owned 32.63%, and DIIs owned 18.59%.

The article discusses the evolution of Zomato, a food delivery company, and its rebranding to Eternal. The company’s founder, Deepinder Goyal, has stated that the rebranding is a symbolic move, indicating that Eternal is no longer just a food delivery company, but a multi-vertical conglomerate. The article argues that this move is a strategic shift, allowing Zomato to diversify its business and address its dependance on food delivery.

The article also compares Zomato’s approach to that of its parent company, Info Edge (Naukri), which has a similar business model, but has not diversified as much. The article suggests that Zomato’s rebranding and diversification could be a defining moment for the Indian internet business, potentially rewriting the playbook for how Indian internet companies operate.

The article also discusses the challenges of building a sustainable business in India, citing an investor’s comment that Indian internet businesses tend to struggle. The article notes that Goyal has a track record of building successful businesses, but acknowledges that building an internet conglomerate is a complex task.

The article concludes by suggesting that the key to success for Eternal will be finding the right balance between growth and profitability, and ensuring that the company keeps a focus on its core business, while also expanding into new areas. It notes that management bandwidth will be a key factor in determining success, and that Goyal’s team will need to navigate the challenges of building a new business while maintaining focus on the core.

Info Edge founder Sanjeev Bikhchandani emphasized the significance of startups in India’s growth journey, stating that many giant companies of the future will emerge from today’s startups. He credited this shift to enabling policies, having access to talented individuals, and availability of capital, as well as the appeal of India’s large market. Bikhchandani, the founder of Info Edge (India) Ltd, which owns job portal naukri.com and matrimonial website jeevansathi.com among others, made these comments on the occasion of National Startup Day, marking nine years of the Startup India program.

Bikhchandani noted that entrepreneurship has become a mainstream career aspiration, and that startups are no longer seen as a niche or unusual path. He believes that many future giant companies will originate from today’s startups, building on the momentum created by the current startup ecosystem. He attributes this change to the favorable business environment, characterized by enabling policies, access to talented individuals, and capital availability, as well as the vast market potential in India.

Bikhchandani’s remarks underscore the importance of startups in driving innovation, job creation, and economic growth in India. As the country’s startup ecosystem continues to evolve, it is likely to play an increasingly significant role in shaping the country’s future. The comments by Bikhchandani serve as a reminder of the vital role that startups can play in driving growth and development in India.

Info Edge, the parent company of Naukri.com, has filed a fraud complaint against Rahul Yadav, the founder of its portfolio company, MSN. The complaint alleges that Yadav misused his position and committed fraud by misappropriating funds and assets of MSN. According to the complaint, Yadav used the company’s funds to invest in his personal ventures and also misused the company’s assets for his personal gain. The complaint also alleges that Yadav made false statements to the company and its investors, and that he has failed to repay the company’s loans and investments.

The complaint was filed with the Delhi Police and the Economic Offences Wing (EOW) of the Delhi Police. The police have registered a case against Yadav and are investigating the matter. Info Edge has also sought a restraining order against Yadav to prevent him from transferring or disposing of any assets that belong to MSN.

The dispute between Info Edge and Yadav is reportedly over the ownership and control of MSN, which was founded by Yadav in 2014. Info Edge had invested in MSN and had a significant stake in the company. However, the relationship between the two parties soured, and Info Edge has now filed the fraud complaint against Yadav.

Info Edge’s Executive Director and Group Chief Financial Officer, Chintan Thakkar, suggests that the faster growth in non-IT hiring segments, particularly in white-collar and English-speaking jobs, indicates a structural shift in India’s economy. According to Naukri.com’s JobSpeak Index for November 2024, white-collar hiring activity grew 2% year-on-year, with non-IT sectors like Oil & Gas, FMCG, and GCCs showing significant growth. Thakkar notes that traditionally, IT jobs have grown at a pace similar to or faster than economic growth, but this trend has changed over the past two years. He attributes this shift to the growing importance of non-IT sectors, which are now growing at a faster rate than the IT sector. This change is a sign of a structural shift in India’s economy, away from relying solely on the IT sector for growth.