Recent Price Movement and Market Context
On the day in question, Info Edge’s share price touched an intraday low of Rs.1036.75, representing a 3.02% drop from the previous close. The stock closed with a day change of -2.49%, marginally outperforming its sector peers by 0.39%. Despite this relative outperformance, the stock has been on a downward trajectory for five consecutive trading sessions, cumulatively losing 7.83% in value during this period.
The broader market environment has been challenging, with the Sensex falling by 479.31 points (-0.87%) to 82,573.23, following a negative opening. The benchmark index remains 4.34% below its 52-week high of 86,159.02. The IT - Software sector, to which Info Edge is closely related, has also declined by 3.12%, indicating sector-wide pressures that have contributed to the stock’s recent weakness.
Technical Indicators and Moving Averages
Technically, Info Edge is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across short, medium, and long-term technical indicators signals a bearish trend. The stock’s 52-week high stands at Rs.1549, highlighting the extent of the correction from its peak.
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Valuation and Financial Metrics
Info Edge’s current valuation metrics have been a focal point for market participants. The company’s return on equity (ROE) stands at a modest 2.7%, which is relatively low for its sector. The price-to-book (P/B) ratio is 1.4, indicating a valuation that is considered expensive relative to its own historical averages and some peers. Despite this, the stock is trading at a discount compared to the average historical valuations of its peer group.
Over the past year, the stock has delivered a negative return of 27.76%, significantly underperforming the Sensex, which has gained 10.90% over the same period. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over one year, three years, and the last three months.
Profitability and Growth Trends
While the stock price has declined, Info Edge’s underlying financial performance has shown some positive trends. The company’s profits have increased by 106.8% over the past year, reflecting strong earnings growth. The PEG ratio, which relates price-to-earnings to growth, is at 0.5, suggesting that the stock’s price does not fully reflect its earnings growth potential.
Net sales have grown at an annual rate of 22.42%, while operating profit has expanded at a faster pace of 29.71%. The company has reported positive results for five consecutive quarters, with the latest six-month profit after tax (PAT) reaching Rs.609.60 crores, a growth of 122.88%. Quarterly net sales hit a record Rs.819.41 crores, and the debtors turnover ratio for the half-year period stands at a high 246.45 times, indicating efficient receivables management.
Balance Sheet and Institutional Holdings
Info Edge maintains a conservative capital structure with an average debt-to-equity ratio of zero, reflecting no reliance on debt financing. This low leverage reduces financial risk and provides flexibility in capital allocation.
Institutional investors hold a significant stake of 52.15% in the company. Such holdings typically indicate confidence from entities with extensive resources and analytical capabilities, which can be a stabilising factor amid market volatility.
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Sector and Market Comparison
Info Edge operates within the e-retail and e-commerce industry, a sector that has experienced mixed performance amid evolving consumer trends and competitive dynamics. The IT - Software sector, closely linked to Info Edge’s business model, has declined by 3.12% recently, reflecting broader headwinds.
Compared to the Sensex, which remains below its 50-day moving average but above its 200-day moving average, Info Edge’s stock is trading below all major moving averages, indicating a more pronounced weakness relative to the broader market.
Summary of Key Metrics
To summarise, Info Edge’s stock has reached a 52-week low of Rs.1036.75, down from its 52-week high of Rs.1549. The stock’s Mojo Score is 43.0, with a current Mojo Grade of Sell, downgraded from Hold as of 1 July 2025. The market capitalisation grade stands at 2, reflecting its mid-tier market cap status. Despite strong profit growth and healthy sales expansion, the stock’s valuation and recent price performance have weighed on investor sentiment.
The company’s low debt levels and high institutional ownership provide some stability, but the stock’s technical and relative performance indicators highlight ongoing challenges in regaining upward momentum.
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