Can anyone explain why just dial profits have increased a lot in last two years? What changes have they done ?
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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.
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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?
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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.
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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?
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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.
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In yesterday’s concall, when asked about their competitive edge over other platforms, Just Dial highlighted two key differentiators: First, they emphasized the growing need for a dedicated, comprehensive platform that caters to all types of enterprises, enabling users to search across a wide range of categories. Second, they pointed out that their platform uniquely leverages detailed portfolios and merchant information, offering richer and more structured content compared to competitors.
I have tagged the same under comments on their concall uploded on Youtube.
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I am not too good with financials but just curious -
shouldn’t you also account for the taxes after subtracting interest and DA
So (335 cr - 58 Cr) * 88%.
This will bring P/E around 35
12% is the tax rate for this year on Justdial as shown in screener. I am guessing either it’s blended or some other tax benefits from previous years.
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Yes, that’s correct. I missed taxes. But objective was to show that JustDial and Indiamart ratios are quite close once you remove investment income from cash reserves. Subtracting taxes increases the ratios but relative difference is the same.
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not the right way to measure
if you remove other income then you need to remove
3700 cr from market cap (5200 cr investments less 30% discount)
current operating profit for fy25 is 335 cr less 58 cr interest and depreciation = 277 cr less 25% tax = 207 cr
current market cap is about 8200 cr less 3700 cr = 4500 cr which means a pe of about 22
disc
invested
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Yes you are correct. This makes sense.
The conclusion here would be the market is pricing much higher earnings performance for Indiamart vs. JustDial in the future. It remains to be seen whether the market is right or not 
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Hi, have a silly question. Any idea why screener cash flow statement shows Working Capital Days as 1413? It was negative in the years past.
That’s not a silly question at all — it’s actually a really good observation and highlights an important concept in financial analysis.
When a screener (like Screener.in or similar platforms) shows Working Capital Days as 1413, it usually means that working capital has become very small or even negative, which can produce extremely high or distorted values when calculating working capital days.
Here’s why that happens:
Working Capital Days = 
Working CapitalRevenue×365\frac{\text{Working Capital}}{\text{Revenue}} \times 365RevenueWorking Capital×365
- If Working Capital (Current Assets – Current Liabilities) is negative or near zero, then dividing that small number by revenue causes the result to spike — hence you get numbers like 1413 days, which is clearly not meaningful in a practical sense.
- In past years, if it was negative, the screener may have just shown it as “negative” instead of calculating days.
- A positive but very small working capital can flip the number from negative to extremely large due to the math.
What to do:
- Check the actual numbers: Look at the current assets and current liabilities from the balance sheet to confirm whether working capital is small or negative.
- Consider this a flag: It could mean the company is operating with very tight working capital (common in some efficient businesses), or it might signal financial stress depending on context.
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Thanks @Tontichor_Akhilesh, you explained it very well.
Below is chatgpt explanation with actual numbers.
As of March 31, 2024, Just Dial Limited reported the following financial figures:
Total Current Assets: ₹46,864 million
Total Current Liabilities: ₹6,102 million
Net Sales (Revenue): ₹11,000 million
Calculation: Working Capital = Current Assets – Current Liabilities
= ₹46,864 million – ₹6,102 million = ₹40,762 million
Working Capital Days = (Working Capital / Net Sales) × 365
= (₹40,762 million / ₹11,000 million) × 365
≈ 1,352 days
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Since just dial has an investment of 4968 cr (taken in current asset), negligible current liabilities and their revenue is 1149 cr, WCD shown as 1432..
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I am no expert. Please correct me if I am wrong.
Since you are focusing on operating profit and want to exclude income from their cash, should not you also subtract cash from market cap of the company.
The cash is around 5200 crores and market cap is around 7900 crores. So 7900-5200= 2700 crores.
So 2700/335(operating profit) = 8 PE.
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Disclosure: I have been following Justdial for the past four years, and it currently accounts for 3% of my portfolio. I am closely following the management decision in dividend/capital deployment to add more in the coming weeks.
While most people in this thread agree that the company is fairly valued or slightly undervalued in its current state, I believe that if it can maintain its current high single-digit growth over the next 3 to 5 years, it is undervalued.
The reason for the growth assumption is that their search volume trends (Google data attached) have largely remained unchanged since the COVID-19 pandemic, so I assume that high single-digit growth is still possible over the next five years.
Note: I have experience in online businesses, and when a business adds a user to their app while the search traffic remains the same, the overall traffic/user will increase over time.
Also, I ran a lazy worst-case simulation with the following question. “Can the management continue to do what they have done with the cash over the last 5 years for the next 5?” This is what came out. If the company retains the cash and builds its bond/MF portfolio, by the 5th year, its interest income will exceed its operating revenue. At this case, based on the RBI’s “Principal business criteria/50-50 rule”, JustDial will be classified as an NBFC. So they will distribute the cash or invest it productively within 5 years.
Note: Please correct me if I am wrong in this assumption here.
I have a 5-year time horizon for Just Dial investment. My assumption is that if pt no. 3 happens, the market cap can double in value from its current level because their BS cash will be more than the current Mcap. Hence, I see a high probability that the stock will double in 3-4 years, which is my minimum investment criteria.
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