Jigar Shah presented his in-depth investment thesis on Info Edge India (NSE: NAUKRI) at Asian Investing Summit 2017.
Info Edge India is among the first Internet companies in India. It owns and operates the successful job portal Naukri.com. It also owns and operates portals (both mobile and desktop) such as 99Acres.com (real estate), Jeevansathi.com (matrimony), and Shiksha.com (higher education search). In addition, the company has invested in several companies (at different stages with different stakes in each) that own and operate Zomato.com, Meritnation.com, Policybazaar.com, Canvera.com, Mydala.com Happilyunmarried.com, Vacation Labs, Big Stylist, and Rare Media.
The company has seen robust revenue growth at a CAGR of 27.5% from INR 820 million in FY2006 to INR 9.38 billion in FY2016 on a consolidated basis. Info Edge operates in some of the fastest-growing segments in India. With Internet penetration growth picking up pace over the past three to four years, the reach of Info Edge has grown. India has also seen a mobile revolution powered by low-cost data connections as well as dropping smartphone prices. Info Edge has positioned itself adequately by launching mobile applications for most of its portals and would be one of the beneficiaries of India’s demographic profile and the growth in mobile Internet in the longer term.
Jigar draws comfort from Info Edge’s strong management which has deep understanding of the Internet space in India and operates with a long-term vision.
Info Edge has over INR 10 billion of net cash and has potential to grow sales and profit by 20+% annually over the next five to seven years. The sum-of-the-parts valuation seems attractive and offers a good risk-reward over a three-to-five-year time horizon.
About the instructor:
Jigar Shah, born and raised in Mumbai, India, is a CFA Charterholder and a C.A. He has more than 14 years experience as an analyst and fund manager. Jigar has researched global equity markets for an investment firm for five years and has spent nine years in Indian equity markets. Jigar joined Banyan Tree in 2011 as a fund manager. He is an avid reader and passionate about researching businesses, moats and investing for the long term. Banyan Tree Advisors is a SEBI registered Portfolio Management Service (PMS) company, established in 2004, and based in Bangalore and Mumbai, India. Banyan Tree has a consistent track record of over a decade of growing wealth for its clients through a long term, disciplined approach. As on February 2017, its equity AUM was INR 944.55 crores ($141.5 million) for over 700 clients.
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