Info Edge (India) Ltd shares surged 6% on Friday, November 22, after the global financial firm Goldman Sachs upgraded the company from a “Sell” to a “Buy” rating citing the company’s prospects across its core and emerging business segments.

It also increased its target price to ₹8,600 from ₹5,700 earlier. The increase in the target price suggests a potential upside of over 14% from Thursday’s closing level.

This revision reflects the firm’s growing optimism about Info Edge’s growth prospects across its core and emerging business segments.

Goldman Sachs cited an improving demand environment for India’s IT sector as a key driver for Info Edge’s performance. The company’s flagship recruitment segment is now expected to deliver a robust compound annual growth rate (CAGR) of 16% between FY25 and FY28, a marked improvement from the 8% CAGR anticipated for FY 23-25.

The report also highlighted a promising outlook for Info Edge’s real estate platform 99acres.com.

Goldman Sachs anticipates over 20% revenue growth for the segment in the coming years, underpinned by scalability and a stabilising competitive environment. The platform is expected to achieve breakeven by calendar year 2025.

Goldman Sachs expressed confidence in Zomato, which constitutes 33% of Info Edge’s market capitalisation. The brokerage noted potential upside risks to Zomato’s revenue estimates and valuation multiples, suggesting its positive stance on Info Edge’s investment portfolio.

On November 12, Chintan Thakkar, Whole-Time Director and CFO of Info Edge, the parent company of Naukri.com, stated that the share of non-IT sector hiring on their platform is expected to reach 45-50% in the near future.

Thakkar highlighted that hiring trends generally mirror broader economic conditions, with the balance between IT and non-IT recruitment reflecting shifts in the external job market.

As part of its growth strategy, Info Edge has been strengthening its presence in Tier 2 and Tier 3 cities, contributing to additional growth on the platform.

Info Edge announced its Q2 financial results on November 8, reporting consolidated revenue from operations of ₹700.82 crore, an increase from ₹625.85 crore in the corresponding period last year. The company’s total income, including other revenue streams, stood at ₹781.16 crore.

Shares of Info Edge (India) Ltd were trading 5.04% higher at ₹7,894.45 apiece on the BSE at 11:17 am.

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