Great report. You just have not highlighted any risks for the company.
Hey Avneesh thanks for the Reply well, I have a thesis Separately, attaching it here, it also has Valuation in it as well, let me know what you guys think about it .
Investment Thesis-Infollion Research Services Limited.pdf (756.8 KB)
3 Likes
The biggest risk is the Stable Gross Margin Philosophy. They believe that higher gross margins could attract competitors, making the market more crowded.
No matter what they say, there is no moat in the business. They are gaining market share by lowering the prices. Someone else can also do this. My only concern is that margins will be hit if some new startup (from India) comes with aggressive pricing. But for now, the company is experiencing great growth. The competition (even if comes) will take time to catch up.
4 Likes
https://www.screener.in/company/EMAIN/consolidated/
EMA Partners India Ltd
Hi everyone, please have a look at this company, is it a competitor of naukri.com or infollion?
Sales & profit are higher than Infollion but market cap is lower.
It doesn’t compete with Naukri or infollion. It’s a c-suite executive hiring i.e CXOs biz. It’s a relationship driven biz so much stickier in nature, infollion is into expert networks, and naukri is for mass hiring. Korn ferry is a close competitor, but it’s private. There is a yt video with one of the md of korn ferry to get some idea on exec hiring biz and how they grew through acquisitions coz the core biz throws a lot of cash.
There is also a twitter interview of sudarshan sir with an analyst
1 Like
To me, the bigger risk is one of the global players focusing on India more. They’ll come in with the advantage of name (which might attract Indian experts to engage with them instead and also Indian prospective clients to go to them instead), existing client roster, etc
2 Likes
Q4FY25 Notes:
- Quarter of business driven by experts outside India (primarily the US). Indian clients are using US experts.
- No revenue from US clients, will take a few years to develop relationships in the B2B domain.
- Learning platform still in early stage, not contributing in a big way to topline
- Experimental AI: Analyst as a service or a marketplace for AI agents which can quote various data sources, reports and transcripts. Their experts will augment it. (In early experiment phase)
- Management is confident of 30% growth for the next few years. The Indian market is itself growing, and they are also snatching the market share.
- US companies work on very high margins; they don’t compete in the Indian market.
- Not a very concrete answer on receivables, as per them, since the sales have increased, we are seeing a bigger number of receivables. It’s best to see the developing trend over time.
Disclosure: Invested
7 Likes
I think this business faces a big risk from AI. All segments may not feel the same effect but the ones which are relatively less complex are more on the forefront of risk. And gradually as AI keeps evolving, risk will keep increasing.
AI cannot replace the years of experience and deep industry knowledge that experts possess. While AI can assist in understanding products and business segments, it cannot provide the nuanced insights or the inside story of a business. There are many aspects that only seasoned professionals are aware of, which is why their expertise is sought for more detailed and comprehensive information.
1 Like
AI may not directly but AI agents can actually replace people. Being from a tech background I can vouch for AI agent and its capabilities. AI agents are meant to replace human from the interaction and perform all the task that humans can do. I myself created AI agents for some of my task that I used to do manually. We give goals to AI agents and it is more than a mere interaction.
I think if company can actually create AI agents and deploy in their business, then it will affect less. Also recently using Azure and Chatgpt, AI agents created can actually diagnose the disease which is going to affect even doctors as per Bill Gates in future so I dont think we should take AI agents progress lightly and focus only on individual experiences and knowledge. It does matter but agents also has all the experience and possibly can guide better in future and I agree with @Stock_research that less complex tasks can definitely be done by AI agents and risk will increase
2 Likes
Just to add to the discussion regarding the capabilities of AI. Here’s a snippet of a response to a query to an LLM (incidentally, asked by our very own @pratyushmittal ) about setting off STCG from shares against LTCG.
I was fascinated by how the thought process is laid out, and how well reasoned and complete the answer is. It’s almost as good as asking an intelligent and experienced human tax consultant!
1 Like
I could be wrong, but I don’t believe AI is a threat to the company. The key reason is the “end customers”—they are financially well-off and can easily afford both AI-generated reports and personalised human insights. If the end users were price-sensitive like us, then yes, they might lean toward the cheaper AI option. But when decisions involve several crores, cost is not the only factor—trust, experience, and accountability matter more.
Speaking from personal experience, I’m currently developing a mobile game. While Chatgpt has been helpful, it isn’t always up-to-date with the latest version. And sometimes, it simply can’t help debug certain issues because the solution hasn’t been documented online. My progress is stuck, and I’m more than willing to pay someone with real-world experience to move on to the next step.
AI is a powerful tool, but it can’t replace someone who has truly got their hands dirty solving problems in the field. Everything won’t be documented online.
1 Like