The shares of Just Dial Ltd, a Reliance group company soared on Monday’s early trades to reach an intraday high of ₹ 644.30 apiece. Its shares were locked in a 10% upper circuit on the back of an impressive quarterly result.
Just Dial is the market leader in the search engine segment in India. It provides local search-related services to users across India in a platform-agnostic manner. This means that its software can run on a combination of operating systems and underlying processor architecture or on cross-platforms.
Isha Ambani-led Reliance Retail Ventures is the company’s promoter and it holds 5,59,75,693 shares or a 66.40% stake in Just Dial, according to the shareholding pattern filed with the exchanges.
Quarterly Result
The company’s revenue for the quarter ending December 31, 2022, stood at ₹ 221.4 crores, up 39.3% YoY (year-on-year) and up 7.9% QoQ (quarter-on-quarter). Its net profit for the quarter stood at ₹ 75.3 crores, up 287.7% YoY and 44.2% QoQ.
Meanwhile, its adjusted EBITDA margin (Earnings before interest, taxes, depreciation and amortization) stood at 13.3%, indicating an improvement of 381 bps QoQ.
Business Highlights
Just Dial said that its traffic (quarterly unique visitors) stood at 156.8 million users, up 9.8% YoY and 0.2% QoQ. 85.5% of the traffic originated on mobile platforms, 10.9% on desktop/ PC and 3.6% on their voice platform.
The total Active listings stood at 35.0 million as on December 31, 2022, an increase of 11.4% YoY and 3.3% QoQ. Of these, 1,123,874 listings were added (net) to their database during the quarter. In addition, the total ratings & reviews stood at 139.8 million at the end of the quarter, up 11.6% YoY.
Its cash and investments stood at ₹ 3934.4 crores as on December 31, 2022. At the end of the quarter, its active campaigns stood at 521,880, up 19.3% YoY and 3.6% QoQ.
Target
ICICI Securities in its research report dated January 16, 2023, maintained a ‘buy call on Just Dial’s shares with a target price of ₹ 750 apiece. This translates to an upside of 16.40% as compared to its current share price.
“Sustained improvement in collections on a sequential basis in our view is indicative of an underlying demand for their services,” ICICI Securities said.
It added that ~26% of Just Dial’s revenue comes from the B2B e-commerce segment and it believes that this is likely to be the primary growth driver for the company going forward. ICICI Securities estimates a CAGR of ~ 28.5% in Just Dial’s core business over FY22-FY25E.
“Execution of e-commerce business opportunities currently being piloted by the company is a key monitorable and any potential upside from the same is yet to be priced in,” the brokerage added.
Written by Simran Bafna
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