Info Edge Declines 3.85% This Week: 3 Key Factors Behind the Drop

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Info Edge (India) Ltd’s stock declined by 3.85% over the week ending 27 February 2026, underperforming the Sensex which fell 0.96%. The stock faced sustained selling pressure, hitting fresh 52-week lows on consecutive days amid broader sector weakness and valuation concerns, despite the company’s robust profit growth and strong operational metrics.

Key Events This Week

23 Feb: Stock hits 52-week low at Rs.1,064.25

24 Feb: New 52-week low intraday at Rs.1,008.85 amid heavy price pressure

25 Feb: Partial recovery with 2.57% gain on strong volume

27 Feb: Week closes at Rs.1,031.70, down 3.85% for the week

Week Open
Rs.1,069.05
Week Close
Rs.1,031.70
-3.85%
Week High
Rs.1,051.50
Sensex Change
-0.96%

Monday, 23 February 2026: Stock Hits 52-Week Low Amid Market Resilience

Info Edge’s share price declined to Rs.1,069.05, down 0.37% from the previous close, marking a fresh 52-week low at Rs.1,064.25 during the session. This drop extended a losing streak, with the stock falling 5.73% over four days prior. Despite the stock’s weakness, the Sensex advanced 0.39% to 36,817.86, reflecting a divergence between the broader market and the stock’s performance.

The stock traded below all key moving averages, signalling persistent downward momentum. Valuation concerns weighed heavily, with the company’s return on equity at a modest 2.7% and a price-to-book ratio of 1.4, indicating an expensive valuation relative to historical averages. Meanwhile, the company’s profit growth remained strong, with net profits up 106.8% year-on-year, highlighting a disconnect between fundamentals and market sentiment.

Tuesday, 24 February 2026: Intensified Selling Pressure Drives New Intraday Low

On 24 February, Info Edge’s stock faced significant selling pressure, touching an intraday low of Rs.1,008.85, a new 52-week low. The stock closed at Rs.1,017.00, down 4.87% on the day, underperforming both the IT - Software sector, which fell 4.57%, and the Sensex, which declined 0.78% to 36,530.09.

This day marked the fifth consecutive trading day of losses, with a cumulative decline of 10.73%. The stock’s technical position remained weak, trading below all major moving averages. The broader market’s decline was more contained, but sectoral weakness compounded the stock’s challenges. Despite this, institutional investors maintained a significant 52.15% stake, reflecting continued confidence in the company’s fundamentals.

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Wednesday, 25 February 2026: Partial Recovery on Heavy Volume

Info Edge’s stock rebounded on 25 February, closing at Rs.1,043.10, up 2.57% on a surge in volume to 3,37,169 shares. This recovery followed two days of steep declines and was accompanied by a 0.41% gain in the Sensex to 36,679.75. The bounce suggested some short-term buying interest amid oversold conditions.

Despite the uptick, the stock remained below key moving averages, and the overall weekly trend was still negative. The company’s operational performance remained strong, with quarterly net sales reaching a record Rs.819.41 crore and a six-month profit after tax of Rs.609.60 crore, up 122.88% year-on-year.

Thursday, 26 February 2026: Modest Gains Amid Mixed Market Sentiment

The stock continued its modest recovery on 26 February, closing at Rs.1,051.50, up 0.81%. The Sensex also advanced 0.19% to 36,748.49. Volume was relatively low at 27,396 shares, indicating cautious trading. The stock’s technical indicators remained weak, but the slight gains suggested some consolidation after the prior week’s sharp declines.

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Friday, 27 February 2026: Week Ends Lower Amid Renewed Selling

Info Edge’s stock closed the week at Rs.1,031.70, down 1.88% on the day and 3.85% for the week. The Sensex fell 1.16% to 36,322.56, marking a broader market decline. Volume increased to 1,04,842 shares, reflecting renewed selling pressure. The stock’s technical position remained weak, trading below all major moving averages and continuing its underperformance relative to the benchmark index.

This closing price capped a week marked by significant volatility and downward momentum, despite the company’s strong earnings growth and solid balance sheet. The MarketsMOJO Mojo Score of 43.0 and a Sell rating reflect ongoing valuation concerns and cautious market sentiment.

Date Stock Price Day Change Sensex Day Change
2026-02-23 Rs.1,069.05 -0.37% 36,817.86 +0.39%
2026-02-24 Rs.1,017.00 -4.87% 36,530.09 -0.78%
2026-02-25 Rs.1,043.10 +2.57% 36,679.75 +0.41%
2026-02-26 Rs.1,051.50 +0.81% 36,748.49 +0.19%
2026-02-27 Rs.1,031.70 -1.88% 36,322.56 -1.16%

Key Takeaways

1. Persistent Downward Momentum: Info Edge’s stock experienced a five-day losing streak early in the week, hitting new 52-week lows on 23 and 24 February. The stock traded below all major moving averages throughout, signalling sustained bearish technical conditions.

2. Valuation Disconnect: Despite strong profit growth of 106.8% year-on-year and record net sales, the stock’s valuation metrics remain stretched with a price-to-book ratio of 1.4 and a modest ROE of 2.7%. This disconnect has contributed to the cautious market stance and a Sell rating from MarketsMOJO.

3. Sector and Market Influence: The IT - Software sector faced broad-based selling pressure, compounding the stock’s decline. The Sensex’s modest weekly fall of 0.96% contrasts with Info Edge’s sharper 3.85% drop, highlighting the stock’s relative weakness amid mixed market conditions.

Conclusion

Info Edge (India) Ltd’s share price performance this week reflects a challenging environment marked by valuation concerns and technical weakness, despite the company’s strong earnings growth and operational fundamentals. The stock’s underperformance relative to the Sensex and sector peers, combined with its trading below key moving averages, underscores the cautious sentiment prevailing among investors. Institutional ownership remains robust, suggesting confidence in the company’s long-term prospects, but the current market dynamics and a Mojo Grade of Sell indicate that the stock faces near-term headwinds. Investors should closely monitor upcoming developments and market trends as the stock attempts to stabilise after a volatile week.

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