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Naukri Shows 40% EPS Growth in Q3 FY11


Naukri (InfoEdge) showed some growth in the Q3 results.

Naukri Results

Revenue grew 28% over last year, to 75 crores, and profits grew over 40%, as did EPS. So where did they spend lesser? Turns out nearly 3 crores lesser than the last quarter in promotion and marketing. We’ll have to wait and see what management has to say.

But overall, this is a very overvalued stock. TTM EPS is sluggish at just 12.89. The Current market price is 574, and that means the P/E is an obscene 45+.

Naukri Chart

(Click for larger chart)

I’d mentioned once that the rule with the Naukri stock was: If they announce bad results, the stock goes up. (Read: InfoEdge Results: EPS down 4%, Stock Up 4%)

The converse seems to also be true. With this result the stock did absolutely nothing. Technically it’s very weak – and sitting at an important support line; a recovery from here should take the stock back to 600 at least (watch for it crossing 620). A break down from here has a 100 points more before it finds some strength. Very low volumes though.


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