What analysts are saying about Info Edge post Q4 earnings

Brokerages have maintained a neutral or sell rating on as its March quarter earnings missed estimates, and on the current valuations factor in the long term growth prospects.

Edelweiss has maintained a hold rating with a target price of Rs 5460, saying that current valuations already factor in valuation re-rating. Nomura has maintained a neutral stance and revised target price to Rs 4550 from Rs 3040 on rolling forward of valuations. Motilal Oswal has maintained a neutral rating with a target price of Rs 4590.

Maintaining 'sell' rating on Info Edge, Kotak Institutional Equities said optimism on Info Edge's long term growth prospects is more than priced in.

While Kotak Institutional has revised target price to Rs 3,550 from Rs 3,170 on tolling forward of valuation to June 2023, CLSA has cut target price to Rs 5470 from Rs 5740. However, it has maintained an outperform rating.

"With management indicating a limited impact of Wave-2 in 1Q22 (first quarter of 2022), we expect revenue growth to bounce back sharply by 2Q22. Operating leverage in the business model should ensure its flow-through into margins. The two larger investee companies – Zomato and Policybazaar – are actively working on public listing in 2021, and management remains on the lookout for consolidation or expansion plays in each of the core businesses," said CLSA.