Just Dial Limited shares hiked nearly 7.3 percent recording an intra-day high figure of Rs 698. The scrip currently trades at Rs 677 which is a decent 4.2 percent gain as compared to the previous closing levels of Rs 650. In the last five trading sessions, the stock has gained around 9 percent ranging from Rs 622 to the current levels.
One of the probable reasons for the stock prices to jump is pertaining to the annual results filed through a regulatory filing with the exchange. Highlights of some metrics have been mentioned later in this report.
Just Dial Limited provides local search-related services to users in India through multiple platforms such as Desktop/ PC websites, mobile sites, mobile apps, and text. The company’s all-in-one Mobile App is replete with features like Live TV, Map-aided Search, News and Real Time Chat messengers, Cricket, Music, Radio, etc.
The company also launched end-to-end business management solutions for SMEs in order for them to efficiently run their business online and have an adequate presence through their own website as well as mobile site.
Digging into the financials of the company, the revenue from operations as well as the net profit figures have shown decent improvement in recent quarters. Revenues went up from Rs 221.37 crores in Q3 to Rs 232.53 crores in Q4. As mentioned, net profits too increased from Rs 75.32 crores in Q3 to Rs 83.60 crores in Q4.
Showing a positive scenario regarding short-term payments, the current ratio showed a sudden jump in the recent period. Having a look at the most recent shift, it moved from 0.29 percent in FY20-21 to 8.36 percent in FY21-22.
Something which is not abiding by the effective operations of the company is the basic profitability metrics such as ROE and ROCE reducing on a consistent basis. Firstly, ROE reduced from 17.4 percent in FY20-21 to 3.03 percent in FY21-22.
Continuing the pattern, ROCE numbers, during the same period, shifted down from 20.54 percent in FY20-21 to 3.79 percent in FY21-22.
Written by Amit Madnani
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