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Kumar Satyam

8th Jul 2025 · SEBI-Registered Analyst

Info Edge India: Strong Fundamentals, Weak Technicals – What Should Investors Do?

Info Edge (India) Ltd.

NAUKRI
the parent of popular platforms like ***** 99acres, and Jeevansathi – is showing a curious mix of strong business fundamentals and weak technical signals. Let’s start with the good part. The company has zero debt, improving revenue for four straight quarters, and profits rising QoQ for the last two quarters. In fact, its operating profit margin has surged by over 43% YoY, and EPS growth has remained strong on an annual basis. All of this points to a business with strong operational momentum. In its recent quarterly results, the company also reported growth in both net profit and profit margins, indicating efficiency and pricing power. That’s reflected in investor interest too: FII holding increased from 32.63% to 33.25% Institutional ownership as a whole rose slightly to 52.08% Promoters maintained a solid 37.63% stake, with zero pledging However, the stock faces short-term headwinds: Technically weak, trading below its 20 DMA, 50 DMA, and 200 DMA RSI shows a bearish crossover, often seen as a sell signal High PE ratio (>40) makes valuation a concern in the current market mood DIIs reduced their stake in the March 2025 quarter Also, while revenue and operating profits are up, Net Profit CAGR over 3 years is still negative (-25.78%), mostly due to earlier losses from start-up investments. Bottom line: Info Edge’s core business is recovering well, especially in job portals and digital classifieds. But high valuations, technical weakness, and volatility from its startup portfolio could create short-term pressure. It may suit long-term investors with patience, but traders should wait for better technical confirmation.

#StockInNews#WatchOutFor#FundamentalViews
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