Just Dial: First Mover of Indian Local Search Market


what i see is Revenue :- 3310 mn - 505 = 2801 mn
PBT:- 1538 mn
NP :- 1405 mn
EPS:- 16.60

Highest ever revenues and net profit margins , its compltetely on the right trajectory of growth ,with backing of Mukesh ambani it could be great value creator in coming qtrs?
views invited …
according to my knowledge this company could be biggest beneficiery of the development in AI & ML front…
like what happened in past “The makers of referigerators are nothing today but those who have used it are far larger then inventors”.

Disc. :- invested with 20% of PF.

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Just notice that the tax is very less this quarter so x4 for year might not be true unless there is sequential growth over quarters

Stock reacting to management comments on cash return. On the call they said they are working out a plan to return at least 100% of net income as dividends and/or buybacks.

Assuming ~550Cr of annualized net profit would imply divi/buyback is >5% of market cap even after today’s move up.

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chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.icicidirect.com/mailimages/IDirect_JustDial_CoUpdate_July2024.pdf

Trading at 20x FY25 and super cheap in the context of the current bull market

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Management Guidance

JustDial:

  • 15 % REV Growth

  • EBITDA margins 27-28 %

  • Net Cash on B/S 4750 Cr+

  • Dividend policy to be announced soon

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How are they planning to deploy that much cash? Giving dividend will increase credibility but reinvesting will increase future revenue.

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I am sharing below one latest video on Just dial

I hope you find it useful.

dr.vikas

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Did they conducted concall for Q2FY25 result? I do not see any invite or audio recording for the same. Thanks!

Can someone update on this, was there a call for Q2’Fy25, even I can’t find it

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With 50% of market cap in cash, do you think it is a good buy?

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In some of his interview in 2017, Mukesh Ambani mentioned that he reads 2 hours every day on AI,ML,BC etc…
As he had person relations with many tech entrepreneurs , He will conclude best out of everything. recently nvidia ceo visited and they have some agreement.
I can say they will find anything superior on AI front.
But but… Ambanis style for small company like just dial will reward shareholders?? That’s the biggest reason market not rewarding such a superior results…

Disc. Invested

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It’s really depend how they use this cash pile. if they invest in B2B (JD Mart) and grow it then there will growth in future and accordingly valuation but board does not committing anything whether it will dividend/buy back/ acquisition or organic investment in new initiative which confuses market.
I hope I am wrong but it does feel like JD is not much priority for Reliance otherwise they would have decided by now what to do with data mine for SME - Just dial has been sitting on for quite sometime.

Disc. Tracking position only.

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For Ambanis, their plate is already full with many big themes like Green Hydrogen, 5G and many more. Why would they bother for only 10k mcap comany?

So for us retail investors, better concentrate on other interesting companies.

My personal opinion

Had invested around 800 and sold around 1200.

dr.vikas

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its not like ambanis doesnt care about Justdial… afterall they holds around 64% of 10k company.
what i mean is board will adapt the ambani style like use cash to grow organically …
this is dhirubhais mantra dont buy anything expensive or huge!! dont give too much dividend or buyback …

Disc. Invested

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Lets hope you are correct. But since the acquisition by Reliance there has been 0 changes made only thing different has been the cash infusion for which they have no plans yet and it has been more than 2 yrs now. I get how you feel about Ambani but if you’ve read their concalls there has nothing concrete been done nor there is any plan to do so. I myself wish Reliance would have more influence to grow this company but if you have seen reliance just acquires companies and then let them sit on the backburner. Or they might just be using data from JD.

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Company is almost debt free and generating around 600 crores of free cash flow at current rate. At currrent CMP, thats almost 7% FCF yield. On top, the company has 5000 crores of cash. Even if company grows at nominal GDP, it will be in a position to return investor’s money in 5-6 years. Is there any company in today’s scenario that provides such assurance in cash flow terms. Am i missing something here ?

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The market values growth more. Yes, JD doesn’t have significant competition except for Google (the government will always favour Indian companies). But it’s already a market leader and may have reached its peak penetration (like Colgate / Gillette).
So, it will grow in sync with GDP only.

The market is waiting for the trigger: when JD announces the plan to use this free cash flow. If it’s favourable, the market may re-rate it significantly up.

However, management has only said it will distribute the cash, but there has been NO ACTUAL ACTION.

Let’s see how this unfolds.

Not invested.

dr.vikas

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