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JUSTDIAL - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.5

Last Updated Time : 17 Jan 26, 02:44 pm

Fundamental Rating: 3.5

Stock Code JUSTDIAL Market Cap 6,110 Cr. Current Price 719 ₹ High / Low 1,050 ₹
Stock P/E 10.7 Book Value 574 ₹ Dividend Yield 0.00 % ROCE 7.11 %
ROE 6.18 % Face Value 10.0 ₹ DMA 50 740 ₹ DMA 200 821 ₹
Chg in FII Hold -0.56 % Chg in DII Hold 0.25 % PAT Qtr 135 Cr. PAT Prev Qtr 119 Cr.
RSI 44.5 MACD -2.85 Volume 1,76,948 Avg Vol 1Wk 1,78,644
Low price 700 ₹ High price 1,050 ₹ PEG Ratio 0.07 Debt to equity 0.02
52w Index 5.43 % Qtr Profit Var 2.81 % EPS 65.2 ₹ Industry PE 30.4

📊 Core Financials: JustDial reported quarterly PAT of ₹135 Cr compared to ₹119 Cr previously, showing modest growth with a 2.81% variation. ROE at 6.18% and ROCE at 7.11% reflect weak efficiency relative to peers. Debt-to-equity ratio of 0.02 indicates negligible leverage, supporting financial stability. EPS of ₹65.2 provides earnings visibility, though margins remain modest.

💹 Valuation Indicators: Current P/E of 10.7 is significantly below the industry average of 30.4, suggesting undervaluation. P/B ratio (Price ₹719 / Book Value ₹574 ≈ 1.25) is fair. PEG ratio of 0.07 highlights strong value relative to growth potential. Dividend yield of 0.00% offers no income support. Intrinsic value appears higher than current price, providing margin of safety.

🏭 Business Model & Competitive Advantage: JustDial operates as a local search and discovery platform, benefiting from strong brand recognition and digital reach. Its competitive advantage lies in established user base, wide service listings, and integration with Reliance ecosystem. However, profitability is under pressure from competition and limited monetization growth.

📈 Entry Zone Recommendation: With DMA 50 at ₹740 and DMA 200 at ₹821, the stock is trading below averages, reflecting weakness. RSI at 44.5 suggests neutral-to-weak momentum. An attractive entry zone would be ₹680–₹700, near its 52-week low of ₹700. Long-term holding is viable if monetization improves and digital adoption accelerates.

Positive

  • 📌 P/E of 10.7 well below industry average

  • 📌 Debt-to-equity ratio of 0.02 indicates strong balance sheet

  • 📌 EPS of ₹65.2 supports earnings visibility

  • 📌 DII holdings increased by 0.25%

Limitation

  • ⚠️ Weak ROE (6.18%) and ROCE (7.11%)

  • ⚠️ Dividend yield of 0.00% offers no income support

  • ⚠️ Profitability under pressure from competition

  • ⚠️ Stock trading below DMA averages, showing weakness

Company Negative News

  • 📉 FII holdings decreased by 0.56%

  • 📉 MACD at -2.85 indicates bearish momentum

  • 📉 RSI at 44.5 reflects weak investor sentiment

Company Positive News

  • 📈 Quarterly PAT improved from ₹119 Cr to ₹135 Cr

  • 📈 Strong trading volume near weekly average, showing investor activity

Industry

  • 🌐 Industry PE at 30.4, much higher than JustDial’s valuation

  • 🌐 Digital services sector benefits from rising internet penetration and consumer adoption

  • 🌐 Sector faces challenges from intense competition and monetization pressures

Conclusion

🔎 JustDial is undervalued relative to industry peers, with strong balance sheet and earnings visibility. However, weak return metrics and competitive pressures limit attractiveness. Investors may consider entry around ₹680–₹700 for better value. Long-term holding is justified if monetization improves and digital adoption continues to grow.

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