Recent Price Movement and Market Context
On the trading day, Info Edge (India) Ltd’s shares declined by 2.95%, closing near the intraday low of Rs 1127.95, a level not seen in the past year. This drop came after three consecutive days of losses, cumulatively eroding returns by 9.67% over this short period. The stock’s performance lagged behind the E-Retail/ E-Commerce sector, which itself fell by 2.13% on the day, with Info Edge underperforming the sector by 1.01%.
Technical indicators show the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. This contrasts with the broader market benchmark, the Sensex, which, despite a flat opening and a slight dip of 0.12%, remains within 3.54% of its 52-week high of 86,159.02 points. The Sensex’s 50-day moving average remains above its 200-day average, indicating a generally positive medium-term trend for the market overall.
Performance Over the Past Year
Info Edge’s one-year performance has been notably weaker than the broader market. The stock has declined by 29.57% over the last 12 months, while the Sensex has gained 6.60% and the BSE500 index has delivered a 7.14% return. This divergence highlights the stock’s relative weakness amid a generally positive market environment.
The 52-week high for Info Edge was Rs 1636.25, indicating a substantial retracement of nearly 31% from that peak to the current low. This decline reflects a combination of valuation pressures and investor reassessment of the company’s growth prospects relative to its peers.
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Valuation and Financial Metrics
Info Edge currently holds a Mojo Score of 43.0 with a Mojo Grade of Sell, downgraded from Hold as of 1 July 2025. The company’s market capitalisation grade stands at 1, reflecting its valuation relative to market peers. The stock trades at a price-to-book value of 1.6, which is considered expensive given its return on equity (ROE) of 2.7%. This valuation is high compared to the average historical valuations of its peer group, contributing to the cautious stance reflected in its grading.
Despite the share price decline, the company’s profitability metrics show improvement. Over the past year, profits have increased by 151.6%, and the price/earnings to growth (PEG) ratio is 0.4, indicating that earnings growth has outpaced the stock price decline. However, this positive earnings growth has not translated into share price appreciation, suggesting that market participants remain cautious about the sustainability of these gains.
Operational and Financial Highlights
Info Edge has demonstrated healthy long-term growth trends, with net sales increasing at an annual rate of 20.48% and operating profit growing at 26.15%. The company has reported positive results for the last four consecutive quarters, with quarterly net sales reaching a high of Rs 805.45 crore. Profit after tax (PAT) for the nine-month period stands at Rs 1,035.72 crore, reflecting robust earnings generation.
Additionally, the company maintains a low debt-to-equity ratio, averaging zero, indicating a conservative capital structure with minimal reliance on debt financing. The debtor turnover ratio for the half-year period is notably high at 246.45 times, signalling efficient receivables management.
Institutional investors hold a significant stake of 52.15%, suggesting that entities with substantial analytical resources continue to maintain exposure to the stock despite recent price weakness.
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Sector and Market Dynamics
The E-Retail/ E-Commerce sector, in which Info Edge operates, has experienced volatility, with the IT - Software sector declining by 2.13% on the day of the stock’s new low. This sectoral weakness has contributed to the downward pressure on the stock price. However, the broader market, as represented by the Sensex, remains relatively resilient, trading close to its 52-week high and maintaining a positive medium-term technical outlook.
The stock’s underperformance relative to both its sector and the broader market over the past year underscores the challenges faced in aligning market valuation with the company’s financial performance. While earnings growth has been strong, the market appears to be pricing in a cautious outlook on the stock’s near-term prospects.
Summary of Key Metrics
To summarise, Info Edge (India) Ltd’s stock has reached a 52-week low of Rs 1127.95, reflecting a 29.57% decline over the past year. The company’s financials show strong sales and profit growth, low leverage, and efficient receivables management. Despite these positives, valuation metrics such as ROE and price-to-book ratio suggest a premium pricing that has been adjusted downward by the market. Institutional ownership remains high at 52.15%, indicating continued confidence from significant shareholders.
The stock’s recent price action and technical indicators point to sustained selling pressure, with the share price trading below all major moving averages. This contrasts with the broader market’s relative strength, highlighting the stock’s specific challenges within the E-Retail/ E-Commerce sector.
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