Ashish Kila of Perfect Group presented his in-depth investment thesis on Info Edge (India: NAUKRI) at Best Ideas 2020.

Thesis summary:

Info Edge (India: NAUKRI) is a platform company providing online classifieds, primarily in the areas of recruitment, real estate, and matrimony. Revenue has grown at a CAGR of 19% since the company’s public listing in 2006.

In light of the large increase in Internet penetration due to Jio, revenue is expected to continue growing for a long time. Info Edge is also a play on the Indian startup ecosystem as it ramps up its core recruitment business and uses surplus cash flow to invest in promising startups, which results in optionality (e.g., Zomato, Policy Bazaar).

At the recent quotation, the market is only giving value to the core recruitment business, Naukri, and Zomato. Investors receive the other businesses for “free”, including 99 Acres, JeevanSaathi, Shiksha, and 25 startup investments (including Policy Bazaar).

Listen to this session:

slide presentation audio recording

About the instructor:

Ashish Kila is a rank holder CA and MBA from MDI Gurgaon. He has worked with leading investment banks like Goldman Sachs & Morgan Stanley in their equity research division and now is the Director at Perfect Group. Ashish looks after the strategic functions of the group and manages the family office fund. Ashish regularly speaks at various institutions & forums like Indian Institute of Management (IIM) Calcutta, ISB Hyderabad, MDI Gurgaon, MOI Global, CFA Society India, Ambit House, Indian Investing Conclave, October Quest, Flame Investment Lab – Alumni Meets, Delhi Investor Association (DIA), etc.