Info Edge (Naukri) 1st Ever 1:5 Stock Split: Should You Buy Before The Record Date?

The leading online classifieds firm in India for education, real estate, marriage, recruitment, and other services is Info Edge. The largest online employment portal in India and the company's main brand, Naukri. Its commercial portfolio includes education, real estate, matrimony, and recruitment. After Info Edge (India) announced 1:5 stock for the first time since its founding, the company's shares closed Thursday 1.16% higher at Rs 8053.55 per share, with a market value of Rs 1,04,361.22 Cr.

Info Edge Stock Split

The Board of Directors at their meeting held on Wednesday, February 5, 2025, have inter alia considered and approved "sub-division/split of the existing 1 (one) equity share of the Company having face value of Rs. 10/- (Rupees Ten only) each fully paid- up, into 5 (five) equity shares having face value of Rs. 2/- (Rupees Two only) each, fully paid- up, by alteration of Capital Clause of the Memorandum of Association of the Company, subject to approval of the shareholders by way of Postal Ballot and any regulatory/ statutory approvals, as may be required under applicable laws. The Record Date for the purpose of the sub-division/split of equity shares shall be decided after taking aforesaid approval of the shareholders of the Company and the same will be intimated in due course," said the company in a stock exchange filing.

Info Edge Q3 Financials

For the quarter ending December 31, 2024, Info Edge (India) Limited's revenue from operations jumped by 12.8% to Rs 671.5 crore on a standalone basis from Rs 595.4 crore in the same quarter of the previous fiscal year. The company's standalone billings for the quarter came to Rs 668.3 crore, up 15.8% YoY. Billings grew 15.2% YoY in the recruitment business and 16.0%, 36.0%, and 12.3%, respectively, in the non-recruitment business verticals of 99acres (the real estate vertical), Jeevansathi (the matrimonial business), and Shiksha (the education sector).

In Q3FY25, the company's operating profit margins climbed to 39.2% of revenue, and its operating profit on a standalone basis surged by 20.4% to Rs 263.4 crore from Rs 218.7 crore in Q3FY24. Naukri's parent firm, Info Edge, reported a net profit of Rs 242.59 crore for the third quarter that ended in December 2024, rising 60.6% from Rs 151.09 crore in the same period last year.

Mr. Hitesh Oberoi, Managing Director and Chief Executive Officer said "In Q3, we achieved 16% billing growth, driven by consistent performance across all four verticals. Our recruitment business continued its growth trajectory across all segments, contributing to improved operating profits. Additionally, the non-recruitment businesses are also nearing breakeven, further strengthening our position for sustained growth."

Mr. Chintan Thakkar, Director and Chief Financial Officer said "With an overall improvement in business performance, we witnessed 20% year-over-year growth in standalone operating profits and 27% year-over-year growth in cash generated from operations. As of December 31, 2024, our cash balance stood at ₹4,290 crore, highlighting our strong financial position."

Info Edge Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "Naukri is currently trading at ₹8,056 and has shown strong buying momentum in recent sessions. Since January 28, the stock has reversed from lower levels and broken the significant resistance at ₹8,000, signaling bullish sentiment. It has also found support at the 50-day EMA on the weekly chart while staying comfortably above its 20-day, 50-day, and 200-day EMAs, indicating solid support across both short-term and long-term trends."

"Last week, the stock formed a strong bullish candle, and the upward momentum has continued this week, supported by increased trading volume. This suggests the sustainability of the bullish trend. The Relative Strength Index (RSI) currently stands at 55.95 and is trending upward, indicating increasing buying interest and momentum," the analyst stated.

"From a trading perspective, the ₹7,850 level is expected to act as a strong support. Traders can consider entering at the current price of ₹8,056, with a stop-loss at ₹7,777. A decisive close above ₹8,250 could trigger further upside potential, with the stock possibly reaching ₹8,500 in the short term," Mandar Bhojane further commented.

"InfoEdge stock price is slightly bullish on the Daily charts with strong support at 7572. A Daily close above resistance of 7838 could lead to a target of 8750 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.