Naukri shares nosedive — here's why investors are punishing the stock

Info Edge (India) shares slumped on Monday, after the company – which runs job portal Naukri.com – reported a net loss for the quarter ended December 2022 as against a net profit for the corresponding period a year ago. Analysts say the sell-off in the Naukri stock can be attributed to multiple factors, including a write-off investment in property tech start-up 4B Network.

Info Edge shares slumped by as much as Rs 459.9 or 12.1 per cent to Rs 3,351.1 apiece on BSE.

Info Edge Q3 Results

The company reported a consolidated loss of Rs 116.5 crore for the three-month period, as against a net profit of Rs 4,601.87 crore fr the year-ago period. The company's profitability was impacted by a write-off investment in 4B Networks, a dip in the valuation of some investments and a slowdown in the job market. Info Edge wrote off Rs 519.9 crore in 4B Networks, according to the company’s filing.

Its revenue increased about 40 per cent to Rs 589.51 crore for the three-year period.

What brokerages recommend on Info Edge (Naukri) after the company's Q3 results

Brokerages are divided on Info Edge. CLSA maintained an ‘underperform’ rating with a target price of Rs 4,000 apiece.

Info Edge share price history

Info Edge shares have tumbled around 24 per cent in the last one year, sharply underperforming the Sensex index, which has risen seven per cent rise.

Naukri shares have declined more than 12 per cent in 2023 so far, as against a decline of more than one per cent in Sensex.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.