Info Edge- Green Shoots Visible In Hiring Data; Zomato’s Outperformance Is Not Yet Priced In: ICICI Securities

ICICI Securities Report

After a muted Q3 FY24 earnings, we note a marked improvement in IT hiring since November 2023, as per Job Speak data. This is in line with most managements’ observations on increasing manpower utilisation across IT firms as highlighted in Q3 earnings calls.

In our opinion, this is a lead indicator for the much-awaited recovery in IT sector hiring. Non-IT sector hiring continues to be strong across infrastructure/ consumption/ services sectors.

We think 99acres should turn profitable by Q1 FY25E, aided by strong tailwinds in the underlying real estate sector.

Zomato Ltd. is up 68% since the last six months and we believe there is scope for further upside. This implies ~$4 billion valuation for Info Edge Ltd.’s 13.7% stake at Zomato’s target price of Rs 300.

Given the multiple potential triggers with limited downside risks, we re-iterate Buy on Info Edge with a revised target price of Rs 6,993.

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