Naukri’s Edge: Classified Growth with Startup Optionality

NAUKRI

🔹 Fundamentals

Core biz: Naukri (recruitment), 99acres (real estate), Shiksha/iimjobs (education), Jeevansathi.

Q1 FY26 results:

Revenue: ₹791 Cr (+17% YoY, +5.5% QoQ).

Billings: ₹644 Cr (+11% YoY).

PAT: ₹343 Cr (+32% YoY, –26% QoQ).

Operating margin ~34%.

Balance sheet: Debt-free, large investments (Zomato/PolicyBazaar >₹30,000 Cr).

Valuation: P/E ~85–90×; P/B ~2.6×; ROE ~4%; Dividend yield ~0.4%.

🔹 Growth Drivers

Hiring recovery → higher Naukri ad spend.

99acres scaling & cash positive.

Premium HR SaaS & product monetisation.

Value unlocking from investments.

🔹 Risks

Dependence on recruitment cycle.

Stock valuation sensitive to Zomato/PolicyBazaar.

Competition (LinkedIn, job portals, property sites).

Execution risk in new verticals.

🔹 Technicals (Weekly Chart)

CMP: ₹1,398.5.

Resistance: ₹1,432 (horizontal + trendline).

Breakout signal: Weekly close >₹1,432 with strong volume.

Targets: ₹1,550 (T1), ₹1,750 (T2).

Support: ₹1,360 (short-term), ₹1,300–1,250 (strong zone).

Stop loss: Weekly close <₹1,360.

🔹 Outlook (3 yrs)

Base case: Revenue CAGR 12–18%, margin expansion.

Bull case: 20%+ CAGR + portfolio upside.

Bear case: Single-digit growth if hiring slows.

🔹 Bottom Line

Investor view: Quality market leader + investment optionality.

Action: Watch for a breakout >₹1,432 with volume for entry; else accumulate on dips near ₹1,300–1,250 with disciplined sizing.


⚠️ Disclaimer:
This analysis is for educational and informational purposes only.
We are not SEBI-registered analysts or advisors.
This is our personal view based on available data and market trends.
Please consult your SEBI-registered investment advisor before making any investment or trading decisions.
You are solely responsible for any financial decisions you make based on this content.


========================
Trade Secrets By Pratik
========================