On Monday, BofA Securities expressed a positive outlook on Info Edge India (INFOE:IN) stock, maintaining a Buy rating and a price target of INR9,000.00. The firm's stance is buoyed by the company's integration of artificial intelligence (AI) into its services, which is expected to enhance customer engagement and potentially lead to the creation of new products.
Info Edge India, which operates multiple internet platforms, is reportedly taking several initiatives to incorporate AI and machine learning (ML) across its businesses. In its matrimony segment, the company is improving its matching algorithm, which has already led to increased user monetization and even price hikes in some instances due to better match acceptances.
The employment portal Naukri is another area where Info Edge is leveraging deep learning and ML to refine its job and resume search engines. This has resulted in improved suggestions that connect job seekers with recruiters more effectively. The anticipated outcome of these improvements is the company's ability to charge higher prices for its services.
Additionally, the real estate platform 99Acres and the education portal Shiksha are utilizing AI to generate more high-quality leads for their customers. The company's general AI use is also contributing to the introduction of new features across its platforms. For instance, the resume writing business, which has reached an annual scale of Rs 1.5 billion, has transitioned from a manual process to one where workforce productivity is significantly enhanced through AI.
Naukri has also launched a mock interview service that assists users in preparing for job applications by uploading their resumes. Moreover, the platform offers candidate screening services for a fee, which BofA Securities anticipates could be automated, providing additional benefits in the future. These AI-driven initiatives are key factors behind the maintained Buy rating for Info Edge India.
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