There is a UBS report on Justdial. Probably last week. Please share this report.
It looks like the offer opens on September 23rd
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I just read the open offer document and see Sr Ambani, Isha and Akash will be appointed directors in just dial.
I looked at their other directorship and they are directors in big companies only and not in all reliance acquired companies.
Does it indicate something very big being planned by reliance for just dial. Any views?
Discl: invested small tracking position.
Are they directors in recently acquired Hathway cables and Den networks also?
One reason for JD could be it is new age business that current generation understands better. It is a business for next multi decades hence makes sense for new generation to be active part of it and understand it better and at par with its founders who happen to continueâŚNow if all this will benefit JD shareholders or Jio (RIL), I am not sure.
Precisely because of above unsureity, instead of building on to my tracking position, I had to unfortunately sell it. The beautiful JD story ended for me there.
Something to note here is the way acquired stocks by Tatas and same by RIL have behaved. While Hathway, Den etc are languishing, Tejas has almost tripled swiftlyâŚSuch data points and also the way businesses were restructured (or not restructured) made be uncomfortable with RIL acquisition.
Disc: Above views purely personal and I maybe completely wrong in my assessmentsâŚ
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FYI, they are not directors in Hathaway and den networks.
Still clarity is not there, but I am waiting to see some clarity otherwise will decide to exit after 6 months.
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nalanda has started selling
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Thanks for the information. Where are you seeing this?
reported to exchange by Nalanda on 16th Sept
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Thanks
While Nalandaâs intention wonât add much value to this thread, my last post in this regard would explain why Nalanda might have exited.
They donât prefer to remain invested in Conglomerates or subsidiaries.
Conflict of interest is inherent to being a shareholder in any subsidiary or division, because the topmost promoter (i.e. owners of parent entity) wants to maximize value at his level, not mine.
there are sober problems with conglomerates. This setting is also fraught with misaligned interests. Focus is lacking. When company #8 in the group is going through covid, itâs unlikely to get promoterâs undiluted attention (whereas itâs #1 for me, if I am not a shareholder in numbers 1 through 7).
The Author Anand Sridharan is one of the founder Investor at Nalanda Capital.
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| Dec-18 | Mar-19 | Jun-19 | Sep-19 | Dec-19 | Mar-20 | Jun-20 | Sep-20 | Dec-20 | Mar-21 | Jun-21 | Sep-21 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Other Income | 34 | 32 | 31 | 44 | 26 | 38 | 77 | 27 | 30 | 16 | 23 | 36 |
| Profit before tax | 81 | 83 | 80 | 96 | 78 | 98 | 101 | 58 | 56 | 39 | -4 | 43 |
| Other Income/PBT % | 42% | 39% | 39% | 46% | 33% | 39% | 76% | 47% | 54% | 41% | â | 84% |
Other income is increasingly a higher % of PBT, even as the profitability continues to drop. This means that excluding other income, valuation of core business is actually twice of what is visible.
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Reliance Retail acquired controlling stake (of âš10 each) of Just Dial at a price of âš1,020/- per equity share . The share price is now 33% down from that acquisition a few months ago. Any idea what is wrong with this company?
It may be due to the reason that their sales keeps decreasing for the past 3 quarters. Also, not sure how effectively JD Mart is coming up after RILâs acquisition of JD.
Anyone tracking this.
Last quarter results were impressive
Kotak and ICICI both have given a buy call post results with targets of 840 and 750 respectively.
Valuation is <20x excluding cash which is cheap for an internet company which can scale multiple times.
This can be a multibagger if all triggers play out. Worst case downside shouldnât be more than 20-25% as it holds cash equivalent of 80% of Mcap.
A couple of triggers:
- JD Expert: Similar to Urban Company
- B2B : Similar to IndiaMart
- Synergy benefits with Reliance Retail in B2C space
Disc: Taken a tracking position post results.
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Good result is an optical illusion. If you study in detail, 56 Cr of other income is abnormally high hence seems like one time. Operational margins are way below pre covid levels whereas stock price has already gone to pre covid levels.
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I am aware. This is not one time income. They have 3800 crores worth cash and investments.
Best is to look at EV/EBIDTA
What is vision of RIL for this company post acquisition? Are they integrating it with Jio Platforms? Any merger or want to expand it on its own or it will be a boost to Jio?
I think after RIL acquisitions, dynamics and future roadmap is not clear. Had it been a standalone company things would have been easier to guess.
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Not yet spelled out that is why these valuations. Read ICICI report - âstealth modeâ.
Once clarity is there these valuations will not be there.
Key is to figure out what is downside+probability and what is upside+probability.
Obviously this can not be your core PF
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Few updates from the latest Press Release and IP
- Operating revenues have been on an impressive uptrend since last 5 qtrs.
- All user engagement metrics that mgmt shares (like qtrly unique visitors, user engagement, active listings, app downloads etc ) have been on a moderate uptrend for nearly similar quarters.
- Cash balance have gone up by 246.7 cr. YoY to 4066.8 cr.
- Revamped site looks sleek. I was thinking, JD business will lose relevance in the current times. But good to see that mgmt. is trying to keep it relevant and numbers seems to suggest, that they havenât fallen off the radar of users.
- New initiatives, like JDMart (competitor of indiamart), JDExpert (competitor of urban company etcâŚ) have taken shape. Company was on a hiring mode for last few qtrs, which has resulted in increased employee expense.
Disc: Have a trading (PEAD) position.
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Thanks for detailed updates. Significant thing which happened with JD was getting acquired by RIL. Anything new about the synergy or vision of RIL for JD ?