(Rating: BUY, TP: Rs5,512, Upside: 10.7%)
- Reported revenue of Rs 2900 mn in Q4FY21 (down 10% YoY, up 6.5% QoQ, slightly below estimate as weak billings in early part of Pandemic had adverse impact on Q4 topline.
- EBITDA was down 45% YoY (down 22% QoQ) led by wage hike as employee cost (52% of sales) increased by 15% QoQ as it continues to invest in talent with improvement in demand outlook. Advertising expense also increased by 10.8% QoQ as unlocking of the economy in Q4FY21 required higher marketing expense especially in Jeevansathi.
- On the positive note, the total billings grew by 40% QoQ to Rs 4,146mn, signifying strong growth outlook. We maintain BUY on stock with unchanged target price of Rs 5,512
Shares of INFO EDGE (INDIA) LTD. was last trading in BSE at Rs.4867.25 as compared to the previous close of Rs. 4978. The total number of shares traded during the day was 53224 in over 9595 trades.
The stock hit an intraday high of Rs. 4970 and intraday low of 4851. The net turnover during the day was Rs. 260862959.