Now in this blog I am going talk about – A cool stock For Long Term Investment. I call it as millennial’s stock. Well you all must be thinking what if we could invest in zomato or maybe who you must be thinking how can I invest in naurkri.com. The match maker jeevansathi.com whose brand ambassador is none other our former captain of Team India Mahendra Singh Dhoni. You must be thinking wish I could invest in 99acres.com searching for PG , Rent houses etc. Such a wonderful businesses right!
Do you know all these businesses have something in common! They are managed or have a good amount of investment from a same company which is Infoedge India ltd. The cool thing here is Infoedge is listed on Stock exchanges of india. [ NSE and BSE ]. So if you buy shares of Infoedge you are indirectly investing zomato , jeevansathi 99 acres etc. Next time when you buy your food don’t go swiggy! Go for Zomato instead!
Why I call it as Long Term Investment Stock or millennial’s stock?
Well let me show you the company portfolio of InfoEdge.
If you see all the companies which are managed by Infoedge are used by us in day to day life. The more you use products of these companies the better you will get returns on the stock prices. Already I have discussed why ? If you don’t understand take a look at this blog or maybe tell I will tell you again a example.
- Suppose you are feeling hungry you want order food online.
- Instead of ordering through swiggy or foodpanda blah blah apps order from zomato.
- Now why?
- When you order a food from zomato it will reflect back in sales revenue of the company.
- More Sale revenue means more profit right!
- More profit means stock prices will go up!
- Ya ya I know you will tell one order won’t make any difference right! But remember – Bundh Bundh se sagar banta hai !
- Now think if everyone starts thinking like this just imagine the profits company will generate.
- As once wish man said!
“Aap Chronology Samjhiye“
Whether its zomato , jeevansathi.com , 99acres everywhere we are generating profits to the company. Moreover Naukri.com has 70% market share over the job searches in India. Out of 100 people 70 people post job or get job from it. Even if you are unemployed you are making money for yourself just by searching job over naukri.com.
Long Term Investment Multibagger Stock
If you see the return profile of Infoedge it can be considered as multibagger stock. The wealth it has created over the long term horizon is off the charts. Still it is a midcap company can grow to a large cap company in no time. Moreover this stock is Covid-19 Proof. Why?
Just imagine what is needed to run the company or the raw material. For a cement company or steel company they need heavy machines, equipment to work. Moreover they need the labour to run their plants which is not possible in these difficult times. The word social distancing is a luxury for these type of businesses. Now let’s take the scenario of Infoedge – They need laptop, a internet connection and Boom! The workers can easily work from home and maintain social distancing easily. So even in these confusing and difficult times Infoedge company has the luxury to work and protect their employees easily unlike other companies.
Post Covid-19 Affect
Because of lockdown imposed by our government of India the economy has not crunched but totally shattered. Although the time was given so that our health infrastructure can be strengthen but government has failed to do so. People have lost jobs in this Covid-19 era. So obviously you know they will be looking out for job. Being the industry leader in Job searches Naukri.com will be benefited the most. Its like monopoly for the company.
After the Covid-19 era China saw a huge surge in usage of matrimonial app Lol! right and you know the reason why! If you still don’t get my point either you are too innocent or too dumb decide yourself!. Keeping this in mind you know owns jeevansathi.com and will get benefited by the usage of this app by people of India. Because its now or never. Haha!!
Fundamentals of the company
Now lets take a look at the Fundamentals of the company. if its ok to invest in or not.
- The company has shown a good profit growth of 31.07% for the Past 3 years.
- The company has shown a good revenue growth of 15.24% for the Past 3 years.
- Company is virtually debt free.
- Company has a healthy Interest coverage ratio of 77.97.
- The Company has been maintaining an effective average operating margins of 27.12% in the last 5 years.
- The company has an efficient Cash Conversion Cycle of -28.57 days.
- Company has a healthy liquidity position with current ratio of 2.54.
- The company has a good cash flow management; CFO/PAT stands at 1.05.
- The company is trading at a high PE of 79.82.
So I think in my opinion Infoedge is a company worth investment for but in the end its your decision and do contact your Financial advisor before investing.