The shares of this small-cap company are expected to be in focus after reporting an increase in net profits by 69 percent during Q1FY25. The stock has delivered more than 20 percent returns to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 8,803 crores, the shares of Just Dial Ltd started Tuesday’s trading session on a higher note at Rs. 1,060 compared to its previous close of Rs. 1,051.20. During the trading session, the shares hit a low of Rs. 1,028, losing around 2 percent and closed the day at Rs. 1,035 apiece.
What Happened:
The local search engine Just Dial Ltd declared its Q1FY25 results on July 16, 2024. Quarterly, the revenue (net of GST) increased by 4 percent from Rs. 270.27 crores during the March quarter to Rs. 280.57 crores in the June quarter. In addition, the net profits surged by 22 percent from Rs. 115.65 crores to Rs. 141.22 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue jumped by around 14 percent from Rs. 246.98 crores in Q1FY24 to Rs. 280.47 crores in Q1FY25. On the other hand, the net profits zoomed by 69 percent from Rs. 83.4 crores to Rs. 141.22 crores during the same timeframe.
Furthermore, at the operating level, EBITDA stood at Rs. 80.5 crores in the first quarter of this fiscal with an EBITDA margin of 28.7 percent. EBITDA Margin witnessed 1,389 bps YoY and 261 bps QoQ expansion, led by topline growth and cost efficiencies, both on employee costs and other expenses.
For the quarter, Just Dial’s Total Traffic stood at 181.3 million reflecting a 5.7 percent year-on-year and 6 percent quarter-on-quarter increase.
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Brokerage View:
Additionally, ICICI Direct one of the well-known brokerage firms has given a ‘Buy’ target on the company’s stock with a target of Rs. 1,210 indicating a potential upside movement of around 17 percent compared to its current market price.
Important Financial Ratios:
Due to consistent operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 4.43 percent during FY 22-23 to 9.02 percent in FY 23-24, and, the return on capital employed (RoCE) zoomed from 5.13 percent to 11.19 percent during the same timeframe.
Shareholding Pattern:
According to the latest shareholding pattern, Promoters possess 74.18 percent of the shares, while Foreign Institutional Investors (FIIs) hold 6.95 percent, Domestic Institutional Investors (DIIs) maintain an 8.86 percent stake, and Retail Investors account for the remaining 10.01 percent.
Company Profile:
Just Dial provides local search-related services to users across India in a platform-agnostic manner. The multi-platform offering includes App (Android, iOS), mobile website, desktop /PC, voice and text.
Written By Vaibhav Patil
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