I read an article yesterday in Mint newspaper about Matrimony.com planning to launch its IPO soon for Rs.500 Crores. The article compared this planned listing with 4 other Internet/Software technology companies that had their stock market listings in recent times, they were – Info Edge (Naukri), Quick Heal (Anti-Virus), Infibeam (E-Commerce), JustDial (Local Search). I got curious on how these 4 stocks had performed after their public listing. Doing few searches (Can I call four Google searches to be a Research?) I found that:
Only “Info Edge” has produced long-term capital growth for the public investors.
InfiBeam has been performing well, producing three-times growth from its IPO. But it has been in the public market for only a year, we need to wait it out. Many of the New-Age company stocks not only in India, perform spectacularly well for the first year or two, before starting their downward spiral.
Quick Heal, which has been on the market for about 2 years has been going down from early this year.
Just Dial, which was the darling of the analysts in 2014 & 2015 has been on a steady rapid fall ever since.
The above are observations of the figures. The selection of the above four stocks is random. Let me know in comments if you can think of any other IPO that came in Indian Stocks Markets in the last few years.
Info Edge (Naukri)
Infibeam (E-Commerce)
Quick Heal (Anti-Virus)
Just Dial (Local Search)
Disclaimer: I am an Engineer by qualification and have no wisdom on stock markets. My personal investments in the Equity markets are made through popular Mutual Funds.
Ever since 2016, the Indian capital markets have charted such an astounding performance that it left even the most astute investors scratching their heads. Delivering higher than expected returns in most investments, the Indian stock market lured not only the domestic crowd, but attracted attention of global stalwarts as well. Thanks for sharing a great article.
Now even Naukri faces problem as social media recruitment is eating in to its pie. Till today they are leading recruitment portal, with largest database and a huge user / candidates base. Linkedin steadily incresed its community. Both Google and Facebook are seriously planning to enter this space. Many new smaller niche recruitment solutions are coming up . InfoEdge has made many strategic investment in other startup as angel investor, none of them have done great so far. However in India InfoEdge still remains the best. The performance of the others will be known only after a few years. Matrimony.com’s laser sharp focus has helped the to create good revenue streams. But only a detailed financial analysis could tell us about their strength. They quickly got out of some of their failed investment, I guess. The biggest problem for all these companies is search is continuously eating in to their niches.