Renuka Ramnath Says Naukri At Current Prices Is Fairly Valued

There is no let up in the stock price rise in Info Edge (Naukri.com) even a week after the listing. The Info Edge stock rose 4 per cent today to close at Rs 619. It’s almost 100 per cent premium over the IPO price of Rs 320.
At this price, is the stock overvalued? Renuka Ramnath, CEO of ICICI Venture and one of the investors in Naukri, tells CNBC TV18 that it’s not: “When it comes to companies like Info Edge, where we have been an investor for almost seven years, we can say that they have created a foundation which can deliver that growth. So I certainly think that these valuations are well justified,” says Ramnath.
Currently what is driving the Naukri stock is the future growth potential and the revenues it can bring in. At Rs 320, the IPO was priced at 64.6 times its earnings, which is comparable to its international peers like Monster.com. Since the stock has appreciated almost 100 per cent from there, Naukri leaves Monster far behind in multiples.

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