JUSTDIAL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.7

Here’s a grounded analysis of JustDial (JUSTDIAL) — once a leader in local business search, now in a metamorphosis phase 📍🧠

💼 Core Financials Assessment

Profitability & Returns

ROE: 3.63% and ROCE: 4.81% — weak efficiency metrics; capital deployment isn't paying off well.

EPS: ₹42.7 — solid earnings per share, but dragged down by low returns on capital.

Earnings Performance

PAT growth: ₹39.6 Cr → ₹49.0 Cr (+100%) — impressive QoQ, but likely amplified by previous low base.

Debt-to-equity: 0.02 — nearly debt-free, indicating a clean balance sheet.

Dividend Profile

Yield: 0.00% — the company isn’t prioritizing payouts; a growth focus instead.

📊 Valuation Metrics

Metric Value Commentary

P/E Ratio 51.9 🚩 Steep compared to industry average (26.4)

P/B Ratio ~1.8 Below book value — cautious market sentiment

PEG Ratio 64.8 ❌ Excessive — market may be pricing in unrealistic growth

🧮 Verdict: Stock appears overvalued relative to current growth and return metrics. The PEG figure is alarming, likely reflecting speculative sentiment.

🧠 Business Model & Strategic Position

JustDial is transitioning from a local listing provider to a digital marketplace — post-acquisition by Reliance.

Integration with the Reliance digital ecosystem could unlock new monetization paths: online-to-offline commerce, SME storefronts, and fintech extensions.

But competition remains fierce: Google Maps, Meta Business, IndiaMart, and hyperlocal apps continue eating into its turf.

Institutional sentiment is muted: FII ↓ 0.08%, DII ↓ 0.12% — caution ahead?

📉 Technical Snapshot & Entry Zone

Current Price: ₹850

Below DMA-50 ₹896 and DMA-200 ₹934 — bearish trend confirmation.

RSI: 33.4 — approaching oversold zone.

MACD: -14.9 — momentum weak.

📌 Suggested Entry Zone

Accumulation range: ₹800–₹840, provided RSI stabilizes.

Support likely around ₹765–₹780; resistance near ₹900.

🕰️ Long-Term Holding Outlook

While fundamentals don’t scream value, strategic bets on digital transformation via Reliance could pay off — but execution is key.

Suitable only for patient investors (5+ years) willing to ride out volatility in hopes of platform synergy success.

Watch for: consistent PAT growth, product innovation, and ecosystem leverage.

Would you like to see how this stacks against IndiaMart, Nazara, or other digitization plays across SME, tech, or content ecosystems? Might help sharpen the view 📡✨.

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