Info Edge (India) Limited is an authentic Indian internet company, based in Noida, UP. It was set up by Sanjeev Bikhchandani in 1995. The company runs an online job portal Naukri.com, a marriage website Jeevansathi.com, a real estate classified podium 99Acres.com and an educational website Shiksha.com.
As of September 2020, it holds small stakes in 23 online companies plus two unicorns—the food delivery company Zomato and the insurance aggregator PolicyBazaar. Info Edge was one of the near beginning investors of Zomato and have apparently invested in PolicyBazaar in the year 2008. In 2020, the company has set up a venture capital fund, Info Edge Venture Fund, to invest in online start-up companies.
Software Industry In India
• The global sourcing market in India continues to grow at a higher pace compared to the IT-Business Process Management industry. India is the foremost sourcing destination across the globe, accounting to 55% market share of the US$ 200-250 (approximately) billion worldwide services sourcing business in the year 2019-20.
• The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry are likely to increase by 1.9% to reach US$ 150 billion (approximately) in FY21. In 2020, the IT industry recorded a 138,000 new take on.
• According to the Software Technology Park of India, the software exports by its record element increased by 7% YoY
to reach Rs. 5 lakh crore (approximately) in FY21 from
Rs.4.66 lakh crore (approximately) in FY20, focused by
quick digitization and conversion to distant operational setting that had helped to keep up the industry’s expansion amid coronavirus pandemic.
• Indian software product industry is expected to reach US$ 100 billion (approximately) by 2025. The Government of India has extended tax holidays to the IT sector for Software Technology Parks of India and Special Economic Zones.
• India having established its potential in delivering both on-shore and off-shore services to international clientele, up-and-coming technologies now offer an entire new range of prospects for top IT firms in India. The COVID-19 pandemic has also hastened the requirement for third-party data centre services in India
• The industry’s revenue is estimated at US$ 194 billion (approximately) in FY21, an increase of 2.3% YoY basis. The domestic revenue is estimated at US$ 45 billion and export revenue is at US$ 150 billion in FY21 (approximately).
• The computer software and hardware sector in India attracted cumulative foreign direct investment inflows worth US$ 71.05 billion between April 2000 and March 2021 (approximately).
Company Perspective and Review
• Info Edge has an in-depth understanding of the Indian consumer internet domain. With years of experience in the domain, strong cash flow generation and a diversified business portfolio, it’s one of the very few profitable pure play internet companies in the country.
• Info Edge (India) Ltd share price has appreciated considerably annually (CAGR) over the past ten years. The company is virtually debt free.
• The Board has declared Interim Dividend of Rs. 8/- per
share (on face value of Rs.10/- per share) for the financial
• IPOs of investee firms Zomato & Policybazar should be key catalysts for value unlocking of Info Edge.
• Good financial indicators like a growing EPS and cash reserves, and stakes in growing online businesses in diverse sectors, make Info Edge stock a good long term buy.