Just Dial Ltd.
NSE: JUSTDIAL
About the Company
Just Dial Ltd. is India’s leading local search engine, providing comprehensive information about local businesses to users across the country through its website, mobile app, and telephone services. The company connects users with businesses across various categories, from restaurants and hotels to plumbers and electricians. In recent years, Just Dial has expanded its offerings to include a B2B marketplace, JD Mart, aimed at connecting manufacturers, suppliers, and wholesalers.
Why Invest in Just Dial? Key Highlights
Attractive Valuation
With a P/E of 13.36 and a PEG ratio of 0.26, the stock appears cheap, especially if it can reignite growth.
High Profitability & Low Debt
Boasts an exceptional Net Profit Margin of 51% and is virtually debt-free, indicating a strong, self-sufficient business model.
Stagnant Revenue Growth
A key concern is the low 5-year revenue CAGR of just 4%, indicating difficulty in expanding its top line against competition.
Promoter Pledging
13.9% of promoter shares are pledged, which is a significant red flag for governance.
Financial Snapshot
Technical Outlook
Support
₹750 – ₹780
Resistance
₹1025 – ₹1050
Detailed Analysis: Positives & Risks
Positives
- Cheap Valuation: Stock is trading at a significant discount based on its P/E and PEG ratios.
- Excellent Profitability: A very high Net Profit Margin of over 50% highlights operational efficiency.
- Strong Financials: The company is nearly debt-free and has delivered a respectable 16% EPS growth over 5 years.
- Turnaround Potential: New initiatives like JD Mart could provide a much-needed catalyst for revenue growth.
Risks & Concerns
- Promoter Pledging: 13.9% of promoter shares are pledged, which is a significant red flag for governance.
- Negative Cash Flow: The company reported negative cash from operations, raising concerns about working capital.
- Intense Competition: Faces immense pressure from Google and specialized vertical platforms, capping its growth potential.
- Slow Top-line Growth: Revenue has grown at only 4% CAGR over 5 years, which is a major concern for a tech platform.
Peer Comparison (Internet Platforms)
| Company Name | CMP (₹) | Market Cap (Cr) | P/E Ratio | Revenue Growth (3Y) |
|---|---|---|---|---|
| Just Dial | 920 | 7,891 | 13.36 | 13.5 |
| IndiaMART InterMESH | 2583 | 15506.3 | 29.34 | 29.34% |
| Info Edge (Naukri) | 1420.5 | 92037 | 103.44 | 2.73% |
| Jupiter INFO | 48.8 | 48.9 | 15.34 | 13.03% |
Just Dial Ltd.
Research Report Summary