Any news behind high price movement yesterday?
It was excluded from IT index and OFSS was included thats why last moment sell off.
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ANY STRONG REASON FOR THE EXCLUSION , although fundamental remain strong , even 3rd qtr concall remain interesting & good for long run investment
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InfoEdge-InitiatingCoverage12Mar20-Research.pdf (763.2 KB)
Old report.
Some important questions on long term prospects of Naukri, considering competition from LinkedIn
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Been wondering if anyone has a view on the profitability(or lack thereof) in the core businesses other than Naukri.
Interesting stats how Linkedin progressing
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until or unless Linkedin makes a debut here with ipo how info edge has threat from that , magicbrick is better that 99acre as a user I can say ,but in white collar jobs they are unparalleled, plz clear how it has treat from Linkedin as a stock listed in Bse/Nse
- As the title of this thread says Info Edge is betting on the Peter Thiel model and Naukri is its main cash cow. I am sure the management knows it can’t depend on Naukri forever and even if they manage to pull out 2 to 3 Naukri type success stories in a decade that in itself should do reasonably well for its own shareholders.
- Naukri and LinkedIn continue to target different customer segments (active hiring vs passive hiring) and also have different business models. The question to be asked is whether Info Edge is trying to imitate LinkedIn (the answer seems to be no) or LinkedIn is trying to imitate Naukri (most likely yes)? Will LinkedIn be able to cater to the needs of Indian service-based companies? or will it remain a “professional” network.
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Point 1 … True, InfoEge has pipeline of investments and can through up Naukri Type winners. But, in last decade, opportunities are easy to find as very few players in the space. Zomato and Policybazaar again success stories of earlier investments. Have we seen any recent success (5-10 yrs ) in newer investments? Also, what price we are paying for unknown success stories?
Point 2 … Tried to connect dots what Linkedin is doing…
60% -65% global revenue from Talent sourcing. (So main focus area).
India 2nd largest market in terms of users(71 million).
Keep launching new products to bring more traffic …(For instance, Linkedin Lite was launched to deal with poor Internet network availability in India. Guess what, worldwide people prefer something that opens faster and we learnt that the experience that we build for that speed is not only relevant in India but also relevant worldwide. One of the biggest learning has been translation of product features,” says Datta )
Linkedin has overtaken Monster is US(As per equity report posted earlier)…
Broader point is Linkedin is helping Indian companies in hiring people . And is competing with Naukri .
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Broader questions is …Is Infoedge and Linkedin are competitors. Will Naukri dominance will continue considering increasing presence of Linkedin in helping companies hiring people
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I think Linked can replace only mid to high level individual recruitment whose percentage will be very less but it is really difficult to replace Naukri in mass recruitment.
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I have always wondered about the business model around Shikhsa.com. I mean for getting a lot of traffic and generating revenue from advertisement is fine, but there is lot of competition for the data based market and I have not seen Shikha to grow above from providing data about colleges.
Yes , I also believe Naukri will remain a dominent player in entry and mid level jobs. And Linkedin can get better share in mid to high level. Where lies better pricing power needs attention?
Also, linkedin has products like Recruiter Lite** and many other products which can create stronger network effect and ultimately increased market share.
What you are also missing is the valuation of Naukri & iimjobs which are basically cash cows which are market leaders (combined) and do not need significant investments like the other businesses. This would also form a significant part of the total valuation. Whether you value this business at EV/OCF or P/B or P/S or P/E and at what multiple is subjective to each investor.
Disc: Tracking
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I haven’t missed Naukri.com valuation . I did mention above that question is whether the cash cow sites (and the new sites listed) are worth 50k cr or not. So am looking for someone to do valuation for cash cows. That would help figure out fair price for this stock.
“Across the world, the food delivery industry has exploded; in China, Meituan alone recruited 458,000 new drivers between January and March 2020”
Quite negative take on state of drivers in China’s food delivery business but highly insightful too.
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I could not relate this news of food delivery apps of China to Indian apps. I maybe uninformed but I don’t know of any delivery personnel in India met with an accident in the process of delivering fast, there may be an accident but not because of deliberate speeding to deliver fast. If any they will be a few minutes late given the situation we have, the disorderly congested roads with people and vehicles, the police etc.
The, culture and the mindset of the people also play a role in this. If the delivery is late by a few minutes, do we yell at the personnel, do we threaten him that his future in that company depends on our rating alone? (I know that some drivers who know that the feedback helps, request to give a 5*).
I don’t know about China but in India, the young people who come to metros or other big cities have many other jobs to choose from, although I don’t know the wage differences between all of such available jobs versus food delivery. I think I have heard that some are working in delivery as part time, along with another job. If they come from agriculture families to cities in pursuit of better opportunities and if things don’t work they always go back, this is not do or die for them. That may be the case in Chinese personnel, I don’t know.
So the cut-throat business tactics at some level may be implemented in India too but such incidents of dousing don’t happen, not for food delivery jobs. Do these personnel question if their wages are cut citing some company law, do they find if the reason is legal or not if they are fired?
When India, China and US are distinct to each other w.r.t culture and governance, I don’t see the relatability.
My thoughts. Remove the post if not pertaining to the thread.
Disclosure - I have a position.
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The intention to share this article is not to compare the inhuman treatment of drivers in China to that of India. Nor to say similar things happen in India. There is no intent to cast any negativity on similar Indian biz. But there are several takeaways here wrt Zomato. 1. As in India, China too is a 2 horse race. 2. Combined delivery personnel of Swiggy and Zomato is about 4 lakh, whereas Meituan alone added 4.5 lakh drivers in a single quarter. This gives an idea of the scalability of the business given the size of India. 3. Extensive use of data and technology to understand why food delivery platforms will have an edge in pulling and pushing biz. 4. Use of algorithms to improve delivery experience. IMHO, these are all relevant to understand.
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Zomato IPO is announced
Infoedge selling 750Cr worth as part of OFS.( approx 2% at current valuations - will still hold 18% type stake)
Last funding round puts Zomato at $5.5B valuations, being a duopoly and hyper growth phase for years to come, covid induces structural behavior shift tail winds, multiple child businesses outside core zomato delivery businesses.
A sought after unique futuristic business franchise and Listing gains in this bullish IPO market - multi fold gains are likely over short periods post listing.
Post listing - 18% stake at $11 - 18B mkt cap(2X to 3X of current val or based on 20X to 25X sales of FY21 sales of zomato = 3k cr+ ) = Approx 20K cr+ for Infoedge stake a reality?
Above is Speculative , RHP will be key to analyze.
As investor of infoedge, what next after Zomato and Policy bazaar scale candidates in current investee companies- is big Q!!!
Invested as core PF
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