Just Dial’s Performance Analyzed

Key Points

• Just Dial gets a “Buy” rating from JM Financial.
• Revenue estimates adjusted, but EPS estimates increased slightly.
• Target price raised to ₹1,060, based on a 13x valuation.
• Collections grew 8.1% year-on-year, a positive sign.
• Traffic declined 3.5% despite more advertising, a worry.
• Ebitda margin increased significantly due to cost control.

JM Financial has given Just Dial a good rating, saying they should buy the stock. They’ve slightly changed how much they think Just Dial will earn, but they’re expecting the company to make more money overall.

The analysts want to pay ₹1,060 for the stock, which is a little higher than before. This is based on a simple idea: how much the company makes compared to its expenses.

One good thing is that Just Dial is getting more money from its customers – collections went up 8.1% compared to the previous months. However, fewer people are visiting the website, even though Just Dial is spending more money to attract them.

The company is doing a good job of cutting costs, which is why their profit margin (Ebitda) went up a lot. They managed to save money on things like employee wages and other operating costs.

The biggest worry is that the company isn’t getting more customers online. If this continues, it could make it harder for Just Dial to earn as much money as expected. Despite the inexpensive valuation, the company’s cash distribution policy remains a concern.

“A clear plan for how Just Dial will share its money is very important for the stock’s future.”