Info Edge (India) Ltd: Annual Report & Business Valuation Analysis

This presentation provides an in-depth financial analysis of Info Edge (India) Ltd, a pioneer in India's online classifieds space. The report covers key aspects such as business overview, financial performance, strategic strengths, valuation models, and investment outlook.

Key Highlights:
✅ Business model analysis of platforms like Naukri, 99acres, Jeevansathi, and Shiksha
✅ DCF & Relative Valuation for estimating Info Edge’s intrinsic value
✅ Football Field Analysis & Sensitivity Analysis for market comparison
✅ Strategic investments in Zomato, PB Fintech (Policybazaar), and other ventures
✅ Growth drivers, cost of capital, and risk assessment

A must-read for investors, analysts, and finance professionals interested in valuation techniques and market dynamics.

1. NAME PRN
Sharansh 24020341053
Amanpreet Singh 24020341071
Dhruv Kothari 24020341085
Abishec Shah 24020341133
Adithya TR 24020341134
Shantanu Dev 24020341184
PRESENTED BY
Valuation of

2. Agenda/
Contribution Sheet
1 Business Overview
2 Finance Profile
3 Strategic Strengths
4 Business Model Highlights
5 Growth Drivers & Outlook
6 Cost of Capital
7 DCF Valuation
8 Sensitivity Analysis
9 Relative Valuation
10 Sum of Parts
11 Football Field Analysis

3. Business Overview
Info Edge (India) Ltd is a pioneer in India’s online classifieds space.
The company operates a diversified portfolio of digital platforms
across key sectors:
Recruitment: With flagship platforms like Naukri (along with
iimjobs, NaukriGulf, and others), the recruitment segment remains
the core driver.
Real Estate: The 99acres platform leverages robust digital
marketing and enhanced listing technologies to serve both
residential and commercial property markets.
Matchmaking: Jeevansathi, operating on a freemium model, has
evolved through technological innovation to efficiently match
users while keeping acquisition costs in check.
Education: Through Shiksha, the company provides
comprehensive guidance on higher education choices, aiding
students with information on colleges, courses, and career
opportunities.

4. Financial Profile
Info Edge (India) Ltd is a pioneer in India’s online classifieds space.
The company operates a diversified portfolio of digital platforms
across key sectors:
Revenue & Growth: A net revenue of ₹23,810 Mn, driven by both
the robust performance of the recruitment segment and
impressive gains in non-recruitment businesses.
Profitability: Operating profit before tax (PBT) stood at ₹8,712 Mn
with an operating margin of 36.6%, underpinning the company’s
strong cost-management and operational efficiencies.
Earnings: An Earnings Per Share (EPS) before exceptional items of
₹65.90 reflects a healthy growth trajectory, with a five-year CAGR
of around 25.1%.
Cash Generation: The company generated approximately ₹11,347
Mn in cash from operations, illustrating its capacity to fund
strategic investments and maintain a strong liquidity position.

5. Market
Reach
Strategic Strengths
Technological
Innovation
Early and continuous adoption of AI and
machine learning has enhanced its product
offerings, optimized user experience, and
driven operational efficiencies.
Financial
Resilience
A strong balance sheet with robust cash
flows, significant liquidity, and strategic
investment holdings further positions the
company for sustainable long-term
growth.
A nationwide presence, supported by 83
branch offices and a significant permanent
workforce, ensures localized customer
service and broad market penetration.
Diversified
Portfolio
With well-established brands (Naukri,
99acres, Jeevansathi, and Shiksha), Info
Edge effectively taps into critical life
events—from job searches and property
acquisition to matrimonial and educational
decisions.

6. Long-Term
Investment
Approach
Business Model Highlights
Revenue
Streams
Subscription Fees: Job postings, resume
database access, premium listings.
Advertising & Branding: Prominent for property
developers, recruitment clients, and other
categories.
Freemium Upgrades: E.g., matchmaking
premium features, resume services, etc.
Competitive
Advantages
Dominant in recruitment (Naukri) and a
strong player in real estate listings
(99acres). Recognizable names like
Jeevansathi, Shiksha, and Naukri ensure
high user loyalty and word-of-mouth
traction.
Uses cash from core operations to invest
in early-stage digital ventures, expanding
Info Edge’s footprint in India’s internet
ecosystem.
Platform &
Network
Effects
Large user bases on platforms like Naukri
and 99acres create a self-reinforcing
cycle: more listings attract more users,
and more users attract more listings.

7. Growth Drivers & Outlook
Diversification Across Verticals Real Estate Upswing
Investment Portfolio UpsideMatchmaking & Education
Continued expansion into non-IT
recruitment, tier 2/3 cities, and new products
(e.g., AmbitionBox, JobHai) reduces
dependence on any single segment.
Potential value appreciation in holdings such
as Zomato and PB Fintech (Policybazaar) may
further strengthen the balance sheet.
Jeevansathi’s freemium strategy drives user
growth; Shiksha’s extensive listings bolster its
role as a go-to education platform.
99acres benefits from India’s improving real
estate sentiment and ongoing digitization of
property transactions.

8. Debt/Capital 0.007739631 Change to average
Tax Rate 32%
Risk-Free Rate 6.71%
This is the 10 year government bond yeild
in India, updated on 11th February 2025
Beta 1.26
Market Return 13.30%
This is the 10 year average of the market
return of NSE Nifty 50 index
Market Risk Premiuim 6.59%
Kd 5%
Ke  15.01798%
Country Risk Premium 7.26% Aswath Damodran
WACC 14.93%
Cost of Capital

9. DCF VALUATION
Assumptions:
We have taken growth of Revenue and EBIT till 5 years and then decreased the Growth
Decrease in growth rate is taken as 5% after 5 years.
Terminal growth rate is taken as the nominal growth rate of GDP i.e. 6%
EBIT Growth rate is taken as 30% which is estimated based on current margins that might fade in long term.
We have taken CAPEX to be increasing at a 3% rate as this company is having majorly digital presence and no physical presence as such.

10. DCF VALUATION
After calculating the Enterprice value, by summing the present
value of DCF and terminal value,.
Subtracting net debt from Enterprice Value we get the Equity
value in which we have added the Market value of Investments
(from OCI)
This value gives the stock price after accounting for the notional
gains of Equity investments like ZOMATO and Policy Bazaar.

11. Sensitivity Analysis

12. Relative Valuation
Peer Group Category Selected Peers Rationale/Justification
Employment Services /
Online Job Portals
Seek, Recruit Holdings, DHI
Group, ZipRecruiter
These companies operate in online recruitment and
job portal services, using subscription and
transaction-based revenue models. Their business
models closely mirror Info Edge’s Naukri platform.
Online Services / Classifieds
Rightmove, REA Group,
Matrimony.com, Bumble,
Coursera
Although spanning diverse industries (real estate,
matchmaking, education, dating), these companies
share a reliance on digital platforms and classified
listings, similar to Info Edge’s multi-service
approach.
Real Estate Portals Zillow Group, Redfin
These companies specialize in online real estate
listings and transactions, providing a focused
benchmark for Info Edge’s real estate classifieds
business (99acres).

13. Relative Valuation
Multiple Metric / Definition Rationale / Justification
EV/Sales
Enterprise Value divided
by Forward Revenue
Useful for comparing companies at different stages of
profitability. In high-growth internet and platform-based
businesses, revenue multiples capture scale and market
penetration even when margins vary.
EV/EBITDA
Enterprise Value divided
by Forward EBITDA
Focuses on operating performance while adjusting for differences
in capital structure. It’s especially relevant for businesses with
consistent cash flow generation, enabling a comparison of
operational efficiency.
P/E
Price per Share divided by
Forward Earnings (EPS)
Directly measures the equity valuation relative to earnings. This
multiple is meaningful for companies with stable earnings, and it
provides an equity-based perspective that can be combined with
strategic investment values.

14. Relative Valuation
Multiple
Peer
Median
Info Edge (FY1)
Implied
EV
Add Net
Cash
Operating
Equity
value
Investment
Total
Equity
Value
Implied
share price
EV/Sales 1.8×
26,856 mn INR
(Revenue)
48340.8 43262 91602.8 392912.761 484515.56 3755.93
EV/EBITDA 12.2×
11,175 mn INR
(EBITDA)
136335 43262 179597 392912.761 572509.76 4438.06
P/E 28.7×
65.78
INR/share
(EPS)
NA N/A 392912.761 4933.72
Average Share price : 4375.9

15. Relative Valuation
Significant Impact of Strategic Investments:
Incorporating the market value of investments (e.g., stakes in Zomato, PB Fintech) dramatically increases the total equity value,
raising the implied share price from the core operating valuation of around 1,330 INR to an average of approximately 4,376 INR. This
underscores the material contribution of Info Edge’s venture portfolio to its overall valuation.
Hybrid Valuation Consistency Across Multiples:
Although using different operating multiples (EV/Sales, EV/EBITDA, P/E) yields varying operating equity values, once the strategic
investment value is added, the resulting share prices become more aligned (ranging from about 3,756 INR to 4,934 INR). This
convergence suggests that the investments are a dominant component of the valuation.
Undervaluation by Pure Operating Multiples:
The substantial increase in implied share price when adding investments indicates that relying solely on core operating multiples
may significantly underestimate Info Edge’s true market value, as these multiples fail to capture the “venture portfolio” effect.
Enhanced Investor Appeal:
The higher valuation reflects market expectations of growth and future monetization of these investments. Investors might be willing
to pay a premium for the embedded value and growth potential represented by these strategic stakes.
Importance of a Sum‐of‐the‐Parts Approach:
For a company like Info Edge, where non-core investments are a key value driver, a hybrid or SOTP valuation framework provides a
more comprehensive picture of total enterprise value and per-share equity value compared to traditional relative valuation
methods.

16. Total Enterprise Value (EV): 482198.343
Implied Equity Value: 5,25,460.34
Implied Share Price 4073.34
Sum of the Parts
Segment Key Metric Value Average ( EV/Sales) Implied EV
Recruitment Revenue (mn INR) 18052.66 2.9x 52352.714
Real Estate Revenue (mn INR) 3512.8 9.3x 32669.04
Others (e.g., Matrimony and Education) Revenue (mn INR) 2244.12 1.9x 4263.828
Subtotal – Operations Total Operations EV  89285.582
Investment Percentage  Current Market Value (mn INR) Total Investment amount
Zomato 13.30% 1992017 264938.261
PB Fintech 19.00% 673550 127974.5
Subtotal – Investments Total Investment Value  392912.761
Operational
Valuation
Strategic Investment
Overall Valuation

17. Football Field Analysis

18. Conclusion

19. Thank You