JUSTDIAL - Investment Analysis: Buy Signal or Bull Trap?

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

Investment Rating: 3.5

📊 Long-Term Investment Analysis: JustDial (JUSTDIAL)

JustDial offers a value-oriented digital platform with strong earnings and minimal debt, but its modest return ratios and lack of dividend yield limit its long-term compounding potential.

✅ Strengths

Low P/E (12.0 vs Industry 29.0): Significantly undervalued.

PEG Ratio (0.08): Indicates strong earnings growth at a cheap price.

EPS of ₹70.9: Robust earnings base.

Debt-to-Equity (0.02): Virtually debt-free.

Book Value (₹542): Trading at a reasonable premium to book.

Quarterly PAT Growth (+132%): Strong earnings momentum.

MACD Positive, RSI Neutral (55.4): Mild bullish technical setup.

❌ Weaknesses

ROE (6.18%) & ROCE (7.11%): Below ideal for long-term wealth creation.

Dividend Yield (0.00%): No passive income.

Volume Drop: Current volume below 1-week average, indicating reduced interest.

FII & DII Holding Decline: Institutional sentiment softening.

Price-to-Book (1.56x): Fair, but not deeply discounted.

🎯 Ideal Entry Price Zone

To maximize long-term returns

Fair Entry Zone: ₹780–₹820

This range sits below the 50 DMA (₹850) and offers a cushion against downside risk.

Entry near ₹800 provides a better margin of safety and aligns with historical support.

🧭 Exit Strategy / Holding Period

If you already hold JUSTDIAL

Holding Period: 2–4 years to benefit from digital expansion and monetization.

Exit Strategy

Partial Exit near ₹1,300–₹1,350** if valuation stretches and ROE/ROCE remain weak.

Hold if ROE improves above 10% and PEG stays <0.5.

Reassess if PAT growth stalls or institutional selling accelerates.

📌 Final Takeaway

JustDial is a low-risk, high-earnings digital stock trading at attractive valuations. It’s suitable for medium-term investors seeking value in tech-enabled platforms, but not ideal for long-term compounding unless return metrics improve. Entry near ₹800 could offer a rewarding upside if profitability strengthens.

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