Shares of Info Edge India Ltd. are trading 2 percent lower on Monday after brokerage firm Macquarie sees a potential downside of 30 percent on the stock. The brokerage has also added Info Edge to its Asia Marquee sell list.

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The brokerage has an underperform rating on the stock with a price target of Rs 3,000, which is well below the current market price of over Rs 4,200. Macquarie's bull case sees a potential upside of 5 percent, while bear case expects the stock to halve over the next 12 months.

Macquarie in its note said that it expects the Naukri business revenue growth to taper off with moderation in revenue growth. The business delivered strong growth in billings and revenue over the last two years, which was helped by the IT sector.

In case reveune growth moderates, the brokerage expects Info Edge to experience a compression in its EBITDA margin. It expects EBITDA margin to moderate from a current level of 62 percent from the March quarter compared to its average of 53 percent between financial year 2015 and 2020.

Macquarie also sees no clear path to profitability for Info Edge's other verticals like real estate and matrimony.

The brokerage is also concerned about the write-offs in other portfolio companies of Info Edge. In financial year 2023, the company took a write-off in two investee companies - 4B Networks and Bizcrum Infotech. The write-off amount stood at $75 million on a book worth nearly $240 million excluding Zomato and PB Fintech.

Info Edge India operates websites related to online recruitment, matrimonial services and real-estate, including the leading job portal Naukri.com.

Shares of Info Edge India are trading 2 percent lower at Rs 4,182.85.