Mehabe score: 3 G Factor: 3 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 6.
Description
Justdial is the market leader in local search engine segment in India. The Company 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. #
Main Points
Pan-India Presence
The Company has about 9500 employees in telesales, marketing, feet-on-street activities which are deployed across 250+ cities covers 11,000+ pin codes in India. It derives 70% of its revenues from the top 11 cities including Mumbai, Ahmedabad, Hyderabad, Kolkata, Bengaluru, Chennai, Delhi, etc. Its technology and R&D division is located in Bengaluru.Site:JUSTDIALMain Symbol:JUSTDIAL
Stock trades at 1073.0, above its 50dma 968.03. It also trades above its 200dma 781.2. The stock remains bullish on techicals
The 52 week high is at 1138.00 and the 52week low is at 332.30
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 0.22% over past five years.
-Earnings include an other income of Rs.149.52 Cr.
Competition
– The industry trades at a mean P/E of 196.0x. Info Edg.(India) trades at the industry’s max P/E of 478.3x. JUSTDIAL trades at a P/E of 31.2x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 8.0. JUSTDIAL has a G-Factor of 3 and Piotski scoreof 6.
– Average 1 month return for industry is 1.1%. The max 1- month return was given by Info Edg.(India): a return of 4.2 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 165.41 cr compared to Rs 162.43 cr for period ended Jun 2020, a rise of 1.8%
Company reported negative operating profit of Rs -17.18 cr for period ended Jun 2021. For same period last year, operating profit was 37.49
The EPS for Jun 2021 was Rs -0.57 compared to Rs 5.43 for previous quarter ended Mar 2021 and Rs 12.84 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 678.0 cr for period ended TTM vis-vis sales of Rs 675.0 cr for the period ended Mar 2021, a growth of 0.4%. The 3 year sales cagr stood at -8.7%.
Operating margins shrank to 15.0% for period ended TTM vis-vis 23.0% for period ended Mar 2021, contraction of 800.0 bps.
Net Profit reported at Rs 127.0 cr for period ended TTM vis-vis sales of Rs 214.0 cr for the period ended Mar 2021, falling 68.5%.
Company reported a poor Net Profit CAGR of -15.0% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 17.0% compared to 17.0% over the last 3 Years. – The stock has given a return of 186% on a 1 Year basis vis-vis a return of 22% over the last 3 Years. – The compounded sales growth on a TTM bassis is -29% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is 10% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has fallen for the period ended Jun 2021. The Jun 2021 fii holding stood at 28.68% vis-vis 32.26% for Mar 2021 – Public shareholding has risen for the period ended Jun 2021. The Jun 2021 public holding stood at 22.15% vis-vis 16.91% for Mar 2021
Conclusion
– is almost debt free. – Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of 0.22% over past five years.
-Earnings include an other income of Rs.149.52 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 968.03 and is trading at 1073.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
