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Check Before You Invest : Just Dial Ltd

BSE: 535648 NSE: JUSTDIAL ISIN: INE599M01018
  |   Sector:  Miscellaneous   |   Industry:  Business Support

Snapshot

Q.1 Which industry/sub-sector does Just Dial Ltd belong to?
Just Dial Ltd belongs to the Miscellaneous sector, operating specifically within the Business Support segment.
Q.2 Is Just Dial Ltd a good quality company?
Just Dial Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Just Dial Ltd undervalued or overvalued?
Just Dial Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 8.91 23.89
Price to Book 0.87 1.71
Price to Sales 3.65 7.24
EV to EBITDA 6.1 17.07
Q.4 Is Just Dial Ltd a good buy now?
Just Dial Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Just Dial Ltd?
Just Dial Ltd revenue growth is 9.5% for FY-2025, which is above its 5-year CAGR of 3.68%, indicating faster growth.

Q.2 Gross Profit margin of Just Dial Ltd?
Just Dial Ltd Gross profit margin which is the profit after deduction of direct costs, is 52.8% for FY-2025, which is above its 5-year median of 37.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Just Dial Ltd?
Just Dial Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.37% for FY-2025, which is above its 5-year median of 20.76% indicating increasing margins.

Q.4 Net Profit Margin of Just Dial Ltd?
Just Dial Ltd Net Profit Margin is 51.16% for FY-2025, is above its 5-year median of 31.72%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 52.8 37.3
Operating Profit Margin (%) 29.37 20.76
Net Profit Margin (%) 51.16 31.72

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Just Dial Ltd?
Just Dial Ltd Return on Asset is 11.25%, which is above its 5-year historical median of 7.89%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Just Dial Ltd?
Just Dial Ltd Return on capital employed is 15.64% for FY-2025, which is above its 5-year historical median of 12.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Just Dial Ltd?
Just Dial Ltd Return on equity is 13.54% for FY-2025, which is above its 5-year historical median of 9.47%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Just Dial Ltd?
Just Dial Ltd Cash conversion cycle is -7 days, above its 5-year historical median of -7 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.26 0.26
ROE (%) 13.54 9.47
ROCE (%) 15.64 12.37
Cash Conversion Cycle -7 days -7 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Just Dial Ltd?
Just Dial Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Just Dial Ltd?
Just Dial Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Just Dial Ltd?

Q.1 Promoter shareholding and pledge status of Just Dial Ltd?
Promoters hold 74.15% of the Just Dial Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Just Dial Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Just Dial Ltd vs industry peers?
Just Dial Ltd revenue CAGR is 3.68%, compared to the industry median CAGR of 0.35%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 9.5 0.4
Gross Profit Growth (%) 38.6 13.2
Operating Profit Growth (%) 55.7 14.9
Net Profit Growth (%) 60.9 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.26 0.3
ROE (%) 13.54 3.7
ROCE (%) 15.64 9.3
Cash Conversion Cycle (days) -6.53 44

Valuation & price assessment

Q.1 Stock return of Just Dial Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -3.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-3.6% -8.2% -9% -43.5%
Q.2 Valuation ratios of Just Dial Ltd vs historical?
The current P/E ratio of 8.91 is lower than its historical median of 23.89, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 8.91 23.89 26.13
Price to Book 0.87 1.71 2.37
Price to Sales 3.65 7.24 5.96
EV to EBITDA 6.1 17.07 11.62

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