Info Edge falls 5% to snap 3-day winning streak

NEW DELHI: Shares of Info Edge slumped 5 per cent in Thursday's trade after seeing consecutive rise for the previous three sessions.

The stock fell 5.78 per cent to hit a low of Rs 1,393.40 on BSE.

Centrum Broking believes the company's core recruitment business can continue to grow in low-teens with high margins for the next couple of years on the back of revival in IT sector and increasing contribution from other revenue streams.

"High growth in the real estate vertical to continue as management continues to significantly invest on brand building and product development. While the impact of GST and RERA being behind, this vertical would take time to turn profitable. Focus of Zomato on advertising, loyalty programme, Zomato Gold and food delivery could need further investments," it said.

JM Financial in another note said the company's Q1 results point to a return to the normal growth curve with a pick-up in billing in the core recruitment business (Naukri) led by a revival in the mainstay IT vertical and continued momentum in the real-estate business.

"While we expect A&P spend to remain elevated in the medium term (to gain market share as the demand revives), revenue recovery should lead to both earning growth acceleration and an improved cash-generation," it said.