Buy Info Edge; target of Rs 1500: ICICI Securities

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • Recruitment business is growing at a steady pace of 14-15% YoY, driven by premium products and AI-first services.
  • Newer growth levers such as AI REX and Talent Pulse are scaling well, with an annualized run-rate of ~INR 2.4bn.
  • 99acres is turning operating-cash positive and sustaining growth trajectory, which could unlock value in the SoTP.
  • Job Hai and Aisle are showing promising growth, with billing growth of 86% YoY and 40% YoY respectively.

Thesis Validation Checklist

Investors should watch for sustained growth in recruitment business, improvement in margins, and successful scaling of newer growth levers like AI offerings and Job Hai. Key signals to monitor include: (1) recruitment billing growth, (2) AI REX and Talent Pulse revenue, (3) 99acres operating cash generation, and (4) Job Hai and Aisle growth. Any slowdown in IT hiring, increased competitive intensity, or markdown in valuation of investments could pose downside risks to the thesis.