Target: ₹7,800
CMP: ₹6,544.75
Info Edge in its pre-results business update mentioned that standalone billings grew 19 per cent y-o-y in Q4-FY25, ahead of JMFe of 18 per cent, on the back of better-than-expected billings in all reporting segments. Recruitment billings grew 18.4 per cent y-o-y, the highest in the last 10 quarters, despite a relatively tough base.
Like in the last few quarters, we believe growth was broad-based across IT as well as non-IT. We note that 4Q is seasonally a very strong quarter for the recruitment business, leading us to believe that the trend improvement was led by a mix of strong renewal demand and unique client additions. Further, 99acres’ billings growth was the highest in the last 4 quarters at 21.9 per cent y-o-y.
Others segment, which includes Jeevansathi and Shiksha, too saw healthy 18.7 per cent y-o-y billings growth. We, however, moderate our billings growth forecast for the recruitment segment over FY26/27 to 14.5 per cent from 18 per cent earlier, on account of growing uncertainty around IT hiring demand.
Our SOTP based Mar’26 TP is also revised down to ₹7,800, on the back of lower target multiple for the recruitment business and recent correction in the stock price of investee companies (Zomato and PB Fintech), valued at unchanged holdco discount of 25 per cent to CMP.
Published on April 11, 2025
