Info Edge Shares Sink Following Q4 Earnings Show, Should You Buy, Sell, or Hold?
Info Edge (India) Ltd., the parent company of Naukri.com, recently announced its Q4 FY25 results, showcasing strong financial performance. Despite this, the company’s stock experienced a decline, prompting investors to question whether to buy, sell, or hold their positions.Trendlyne.com+1GuruFocus+1
ЁЯУК Q4 FY25 Performance Highlights
- Revenue Growth: Info Edge reported a 14% year-on-year increase in consolidated operating revenue, reaching тВ╣750 crore, driven by growth in both recruitment and non-recruitment segments. NDTV Profit+6The Economic Times+6Moneycontrol+6
- Net Profit Surge: The company witnessed a significant jump in net profit, increasing by 667% year-on-year to тВ╣463 crore, attributed to improved efficiency and potential one-time financial gains. The Economic Times+3Angel One+3The Economic Times+3
- Billings and Advertising Spend: Billings grew by 19% year-on-year, supported by increased advertising and promotion expenditures, particularly in recruitment and property segments. NDTV Profit+1GuruFocus+1
ЁЯУЙ Market Reaction
Despite the robust financial results, Info Edge’s shares declined by 1.13%, closing at тВ╣1,472 on May 27, 2025. Analysts suggest that the market’s reaction may be due to concerns over increased advertising expenses and potential one-time gains influencing net profit.Sharekhan
ЁЯза Analyst Recommendations
Analyst opinions on Info Edge are mixed:
- Buy Ratings: Several analysts maintain a ‘Buy’ rating, with a consensus target price of тВ╣1,634.75, indicating a potential upside of approximately 11% from the current price. INDmoney
- Hold/Sell Ratings: Some analysts advise caution, citing concerns over increased advertising expenditures and the sustainability of profit margins.NDTV Profit
ЁЯз╛ Conclusion: Buy, Sell, or Hold?
Purchase: The current decline could be a good time to purchase Info Edge if you think the company has space to grow in the long run and has a solid position in the online hiring and real estate industries.
Hold: It can be wise to hold onto your shares if you currently own any in order to evaluate how the business controls costs and maintains growth in the next quarters.
Sell: You can think about lowering your exposure if you are cautious about risks or worried about how higher advertising expenses will affect your future profitability.
As always, your risk accepting and financial objectives should guide your investment choices.
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