JUSTDIAL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.5

📊 Core Financials & Profitability

Profit Growth: PAT surged 132% QoQ to ₹160 Cr, showing strong operational momentum. EPS of ₹70.9 is excellent for a ₹848 stock.

Return Metrics

ROE: 6.18% and ROCE: 7.11% — modest, but improving.

Debt Profile: Debt-to-equity at 0.02 — virtually debt-free, offering financial resilience.

Cash Flow: Operating cash flows rose to ₹143 Cr in Q2 FY25 from ₹109 Cr YoY

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💸 Valuation Indicators

Metric Value Insight

P/E Ratio 12.0 Deeply undervalued vs. industry PE of 29.0.

P/B Ratio ~1.56 Fairly priced relative to book value ₹542.

PEG Ratio 0.08 Extremely attractive — strong growth at low valuation.

🔍 Conclusion: Just Dial is significantly undervalued based on earnings and growth metrics. PEG and P/E ratios suggest strong upside potential.

🌐 Business Model & Competitive Edge

Core Operations: Just Dial is a local search engine and digital directory platform, now a subsidiary of Reliance Retail Ventures.

Strategic Advantage

Integration with Reliance ecosystem boosts traffic and monetization.

EBITDA margins now within targeted band of 28–30%

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Growth Outlook

Net profit jumped 114% YoY in Q2 FY25

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Citi and Nuvama have raised target prices to ₹1,075–₹1,140

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Revenue grew 9% YoY to ₹285 Cr in Q2 FY25

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📉 Technicals & Entry Zone

RSI: 55.4 — neutral, no strong momentum.

MACD: 2.24 — mildly bullish.

DMA Levels: Price near 50-DMA and below 200-DMA — consolidation zone.

📌 Suggested Entry Zone: ₹825–₹850 — near support levels and technical averages.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong earnings momentum, low valuation, and Reliance backing support long-term value.

Buy on Dips: Especially if price nears ₹825 or RSI dips below 50.

Monitor: Traffic growth, margin expansion, and integration with Reliance platforms.

You can explore Just Dial’s Q2 FY25 earnings and brokerage targets or its long-term forecast and technical levels for deeper insights. Let me know if you'd like a peer comparison with IndiaMART or Nazara Technologies next.

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