The real estate segment, 99acres, saw a modest rise of 1.9% to ₹162.8 crore, while the matrimony platform Jeevansathi reported a strong 21% increase to ₹38.6 crore.
In contrast, the education segment Shiksha declined 12.9% to ₹45.1 crore.ALSO READ | ICICI Prudential AMC shares get another bullish call; check CLSA’s price target
The company said that geopolitical tensions directly impacted its Naukri Gulf business and also had a spillover effect on the India recruitment segment.
Brokerage firm Nomura has maintained a ‘Buy’ rating on the stock with a price target of ₹1,500.It said recruitment billings growth of 9.5% was largely in-line with expectations, although overall billings growth of 7.5% fell short of its estimates of 11%, mainly due to weaker performance in 99acres and other verticals.
HSBC has also maintained a ‘Buy’ rating with a price target of ₹1,525, stating that recruitment growth remains healthy despite a high base and weakness in the Gulf business.
It added that overall billings were impacted by transitional factors in 99acres, while performance in matrimony and education segments was largely in-line with expectations.
The brokerage also highlighted attractive valuations for the core business.
On the other hand, Citi has a ‘Sell’ rating on the stock with a price target of ₹1,120.
It expects recruitment revenue growth to pick up with a lag of one to two quarters, supported by billings momentum. However, it has flagged a potential 50 basis points sequential decline in overall EBITDA margins to around 42% in the fourth quarter, even as earnings growth is supported by lower advertising spends.
