Can anyone explain why just dial profits have increased a lot in last two years? What changes have they done ?
1 Like
Investment in bond give them 8% so 4500 cr will give them 360 cr of intrest income …
So I guess it’s not bloated but one of India’s highest corporate governance and patience maintained company…
And that investment is also by India’s largest corporate giant.. .
Second last 8 qtrs are purely based on margin expansion backed by improved efficiency in workforce and extensive use of tech.
RoE seems down because of 2150cr cash infusion thru equity route, otherwise it’s quite optimum compared to peers…
They generated decent cash in past even then mr.ambani decided to infuse more it means they have planned something great , but because of any reason it doesn’t turned on , but tomorrow or next day, they will use cash in very conservative manner…
RIL known for strategic investments and they r doing something with gtpl,hathway, & den and Justdial. Time will tell what’s inside ambanis mind…
Disc. Biased due to my large holding holds 25% of pf.
4 Likes
What has lead to the increase in workforce efficiency ? This is because i still get lot of calls from JD telecallers for upgrading my contract and i keep blocking them still they keep calling from other numbers starting 020 landline nunbers of Pune. So i really want to understand what has really changed in last two years as compared to previous years?
1 Like
They have reduced almost 10% work force (Which as per management is lower performing). At the same time, they continued to grow topline despite lay-offs. Management also told about better platform so that new business can directly onboarded without much human intervention.
Result looks good due to these 2 reasons -
- Reduced cost due to lower staff expense
- Lowered tax. - There investment in debt crossed 3 years so lowered tax. But again due to change in taxation - management told tax will start increasing & won’t be at such low level.
2 Likes
Do you think AI could pose a significant threat to Just Dial if they fail to integrate it into their app? I feel this way because ChatGPT, Meta AI, and Google AI can offer essential solutions for vendors and suppliers without the need to rely on the JD platform. If that happens, how can Just Dial defend itself or reinvent its business model?
1 Like
Completely surprised with the percentage of delivery normal it was in a range of 25 to 30% which is also surprising but today it felt below 5%.
How to interpret this 4% delivery and 1.25 crs shares traded!!??
I believe the stock is currently undervalued, especially when compared to its peers like IndiaMart Intermesh. With the company posting excellent results recently, it could act as a trigger for renewed value buying.
JustDial has a very high contribution to profits from its cash reserves.
For FY25, they had 335cr in operating profit and a further 387cr in income from their cash. If we ignore the 387cr income and subtract 58cr in interest & DA, we get a P/E of ~31.5
For Indiamart on TTM, they had 431cr in operating profit and a further 241cr in income from their cash. If we ignore the 241cr income and subtract 45cr in interest & DA, we get a P/E of ~35
For Indiamart, we should see some YoY EPS growth in Q4FY25 and this should bring down it’s FY25 P/E ratio to the range at which JustDial is trading at.