Sprouts Farmers Market closes $600 million revolving credit facility
On Wednesday, JPMorgan analyst Ankur Rudra adjusted the price target for Info Edge India (INFOE:IN) to INR 1,650 from the previous INR 1,780, while retaining an Overweight rating on the stock. The revision follows the company’s fourth-quarter earnings report, which revealed a significant decline in profit margins for its key segments, Naukri and 99acres, due to higher advertising and promotional spending.
The analyst noted that increased expenses are understandable for 99acres as it aims to capture more market share—a strategy that has shown success. However, the rationale for such spending by Naukri is less clear, given its already established brand presence. Despite management’s strategy to attract more job seekers through these expenses, the analyst expressed skepticism regarding the effectiveness of this approach.
Rudra anticipates a "margin reset" for Naukri, with expectations for margins to potentially recover to 60% in the second half of the fiscal year 2026. The report also addresses the impact of the IT sector’s challenges due to global macroeconomic uncertainties. It was pointed out that while the IT sector, uncertain due to global economic conditions, accounts for 25% of Naukri’s business, the remaining segments continue to show strong performance, supporting the forecast for mid to high teen growth in the fiscal year 2026.
The earnings forecast for Info Edge India has been reduced by 7-11% for the fiscal years 2026-27 due to lowered billing projections for Naukri and decreased margin expectations for both Naukri and 99acres. Furthermore, the analyst has adjusted Naukri’s EV/Ebitda multiple down to 32 times from 34 times but has rolled the valuation forward to June 2026 while maintaining an Overweight stance on the stock, with a revised price target of INR 1,650.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.