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On Thursday, Citi analyst Vijit Jain adjusted the price target for Info Edge India Ltd. (INFOE:IN), increasing it to INR 9,100 from INR 8,850, while reaffirming a Buy rating on the shares. The revision follows the company’s third-quarter financial performance, which, while slightly missing revenue expectations, demonstrated a year-over-year increase of 13% and exceeded EBITDA projections with a 20% rise compared to the same period last year.
Info Edge’s recent earnings report indicated that recruitment billings growth is consistent with long-term trends, showing a 15% year-over-year increase. This growth is expected to maintain its pace into the fourth quarter. The company also saw a significant margin expansion, with margins climbing approximately 300 basis points year-over-year to over 43%. Citi anticipates these margins to further improve, projecting approximately 44% and 45% for fiscal years 2026 and 2027, respectively.
Despite the positive performance, Citi has slightly lowered its future estimates for Info Edge, now forecasting a compound annual growth rate (CAGR) of 15% for revenue and 19% for EBITDA from fiscal years 2024 to 2027, a slight decrease from previous estimates of 16% and 20%. The revised price target also takes into account changes in the valuations of Zomato (NSE:ZOMT) and PB Fintech (NSE:PBFI), which are part of Info Edge’s portfolio, as reflected in their sum-of-the-parts (SOTP) valuation.
In addition, Citi has adjusted the valuation multiple for Info Edge’s core business to 50 times from 52 times, as it rolls forward to the September 2026 estimated EV/EBITDA. The holding company discount remains unchanged at 20%. The new price target of INR 9,100 per share reflects these updated assumptions and valuations.
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