the product is not at all really impressive. It is just a me too product considering the fact that I have witnessed Udaan & Zilingo from the close circles. It is just a me too Indiamart for lead gen.
But the fact to note would be their huge sales fleet which can bring decent traction to this product as this is considered to be a push based services.
Attaching investor presentation.
Being in this tech field , I have been really impressed with their newly launched initiatives each year.
The product provides a very user friendly experience which is a good positive for not a very tech friendly user(like older generation, local SMEâs). The company is trying to compete with huge behemoths without having any debt on its balance sheets but with a very promising outlook. Only time will tell if they are able to squeeze out small market shares each quarter but initial outlook looks good.
Disc: not invested but tracking closely.
Promoter has bought 312869 shares @ 608.
I wouldnt give so much hype into this promoter buying thing because the buyback was done and 50 crores amount had been credited to promoter VSS Mani if my calculation is correct. He bought back only for 12 crores with the buyback money. Now why would somebody buy the same company knowing all internal information for 608 and why not the same purchase at 385 during which the buyback was done and the amount credited into the promoters account. Is this buying done by the promoter just to boost the investor sentiment. May be.
Also while studying the company just came across the annual report that 50 crores was invested in mutual funds before the ipo. But in the very year of the ipo filing it was increased to 300 crores. Have anybody analysed thos company in detail and provide details regarding this. It would be helpful for further analysis.
Also recently came to know xelpmoc founder was ex justdial technical guy. So that validates this company had some technical assistance. The CFO is ex credit suisse employee according to his linkedin profile
Disc satellite portfolio still studying
Can any one throw some light on the ongoing feud between IndiaMart and JustDial. Saw many news articles today, what could be the best & worst case scenarios. Can IndiaMart actually stop the launch of JDMart product? Is there any historical reference to similar incident? Thank you.
I donât think anything is going to happen to JD. Myself being in software field, many top software companies compete for the same market and have many similarities in design. Itâs a common occurrence.
Indiamart is incapable of doing any harm to JDMart based on design allegations.
In respect of data , itâs almost impossible to breach data (unless actual data breach occurs via hacking).
These companies get their data from third parties in the form of APIâs . For eg) stock websites which get their live data from third parties after a lag depending upon the price model (cheaper- more lag)
Results and investor presentation out
ae785685-64e9-46b4-9c6e-a4872bc99c79 (1).pdf (1.4 MB)
e47101f1-f0ca-4637-bb7b-38f50625e117.pdf (5.9 MB)
Disc: Not invested. Tracking.
On comparing financials of Indiamart and Just dial, I observed that although revenue is around same for both the companies, employee cost of JD is double of Indiamart . Any thoughts on that?
I have been tracking just dial since much lower levels but did not take the plunge. In hindsight it seemed like a no brainer. The obvious reasons not to take the plunge was their failures regards their previous projects ie Omni etc and their decreasing value of core product due to Google. However, this b2b business is more along their lines than anything else theyâve done before for simple reasons and I believe they may find some success in it
The cons are there for all to see.
Promoters havenât really been outstanding last few years and their previous products have flattered to deceive.
But considering how quickly the tech landscape changes there is some comfort at the valuations itâs currently trading at even after the run up since at the mere mention of âplatform tech companyâ valuations seem to be going past 50x PE and even 100x PE so at these valuations upside surprises should lead to huge runups and downside surprises has maybe a 50 percent bottom at max.
If you think of it as a startup with no debt , a good brand name that can use its existing assets to leverage a new business model in a sector that has the capacity of huge market frenzy valued at 3 times sales then opening a small position here doesnât sound as crazy as it seems. There is a lot of speculation here since we havenât had any view on how their b2b platform performs but the way the market is currently by the time we get that information the valuations may already have gone through the roof
Disc: Not invested. Margin of safety now almost gone and I doubt il have the funds to take a position anytime soon so il be sitting on the sidelines watching this story play out intently but without any skin in the game. Not a sebi advisor
In addition to above point there is a new platformJD xperts partners for services. It looks like itâs available on play store but only beta version as of now. In Q3 concall also they mentioned about it. What do you think about that?
I do not think the competition will be too intense between India Mart, Udaan and JD MART. If the suppliers donât list on all three platform they are going to loose business because the chances of end user using three platform is highly unlikely, they find something on one platform they might end up closing the transaction there.
The question comes on which platform they are going to spend extra for add on services, and this should be purely driven by the traffic. So in the long term demand side is going to be equally important.
After testing itâs multiyear resistance a few days ago and crashing back down due to the market selloff on Friday⌠just dial has broken through its multiyear resistance with huge volume today. Lots of momentum chasers on board (delivery still in teens) but considering the volume and rises and resistance breaks there is some accumulation going on.
Iâve already used the app and I got to say I really like it. Even though it launched just a few days ago downloads are at 5000 already and the reviews are brilliant(though I donât think online reviews can be trusted anymore⌠I do believe many of these are genuine after going through a lot of them). Their main JD app has 10 million+ downloads and I wouldnât be at all surprised if they manage to leverage their customer data and Salesforce to get to similar levels in a decade. Iâve spent a couple hours with the app and I canât think of any categories or products that are missing so far.
Iâd recommend anyone interested in just dial to try out the app and listen to the concall for Q3 FY21 to get insights regards what theyâve planned for it including subscribtion rates etc and regards how their core product is still performing ok even with the monolith that is Google in the background.
I personally believe just dial is back on track and as mentioned above I do believe this b2b platform model is a natural extension for them. Itâll be a long and hard road and the market frenzy will die down when people realise that this is a very slow long term story and miracles wonât happen overnight.
However, the past few Concalls confirm that their increasing headcount and already huge Salesforce, huge customer database and clean balance sheet(as per latest concall cash and cash equivalents is 1500 crores! mcap is around 5000) is going to try to push JD Mart as quickly as possible. I did not think Iâd get a chance to enter but managed to start my position in the bloodbath on Friday at low 700s. As the quarters go by and we get actual data regards performance il be adding to it.
Disc: not a sebi advisor. Invested as mentioned above. Wasnât a fan of JD but am slowly coming around to the idea that this is not just a traders gambit though I am expecting wild swings in the short term.
Additional notes from concall:
Delhi High Court Seeks Just Dialâs Reply On IndiaMartâs Plea For Contempt Of Order On Copyright Infringement
IPL seems to be working. Downloads at 100k+ now. Everything is going as planned. Last concall management said that the court battle with India mart wasnât a worry. However, further appeal was set for April 15th. Does anyone have any update regards this?
Last known article was here:
Disc: Invested. Not a sebi advisor
@Malkd i downloaded the app and found it good. I was wondering how companies would use their app. Companies have their own vendor registration and approval systems, so how would they integrate or use this app or we are assuming only retailers. SME and general public would be using it. I went through one product category pumps, i would have liked detailed specs and would have like to filter them based on that. I dont think anyone would buy trucks/excavators through their site. What scenario do you see unfolding here, who are the typical users and what kind of revenue can come in. Love the new ads on on TV⌠The target audience seems to be small shop owners who can have a wider market using JD app/
JD Mart mostly have well recognized brands. I just searched for sanitizer and i could get mostly most recognized brands.
Do the same same search on India mart one can see the difference. Indiamart is real SMSE to retailers/ dealers
I wouldnât make a final assumption regards the products on display yet. Right now they are just building catalogues and will be monetising only after a few quarters as per last concall so itâs in a very nascent stage. They are currently targeting mainly their existing customers and building catalogues through them though Iâm sure the little of IPL that was broadcast would have helped them get new SME customers too(and 1 lakh+ downloads too).
Revisited the concall and theyâve said that for the next few quarters they will be targetting their main current customers and spending the next few quarters spending more on ads than theyâve ever done and we ll see a new avatar(the ipl sponsorship shows they are walking the talk). The catalogues and jdmart business overall will be tangible only end of this year basically.
Would just like to add a few things from the concall that i missed above:
Regards results, management said collections should hit around 80 percent this quarter. So revenues should be higher than Q3 but still slower than pre covid. With IndiaMART showing poor results Iâd expect similar here due to the problems faced by the target segment.
One interesting thing which I missed last time was management was asked regards acquisitions similar to IndiaMART and they are very open to it and are currently looking at options. However, they said that they donât want to throw their 1500 crores in cash and so would rather wait for part equity and part cash deals which will happen when mcap increases. So expect similar stories as indiamart to happen here in a few years if they do increase their mcap significantly
Disc: invested
Anyone aware of any new developments with Tata group?
There was news they looking for alliance or stake buyâŚbut post that heard nothing so farâŚ
