Dalal Street Investment Journal - - REVIEWS -

We had rec­om­mended Just Dial in is­sue no. 20 dated Septem­ber 5-18, 2016, un­der the ‘Anal­y­sis’ sec­tion when the scrip was trad­ing at ₹498. Our rec­om­men­da­tion was based on com­pany’s strong fi­nan­cials, mo­nop­o­lis­tic pres­ence in the mar­ket and launch of unique prod­ucts in the online mar­ket.

Just Dial is an online mul­ti­lin­guis­tic direc­tory which op­er­ates 24x7. The com­pany also op­er­ates in the e-com­merce seg­ment through online shop­ping for con­sumers. The com­pany of­fers voice and online plat­form for com­pa­nies which get reg­is­tered with it, gen­er­at­ing rev­enues ma­jorly through search-re­lated ser­vices from paid list­ing ser­vices for SMES. On the fi­nan­cial front, Just Dial’s net sales in­creased by 1.17 per cent to ₹181.72 crore in Q4FY17 on a yearly ba­sis.

The com­pany’s profit after tax (PAT) de­clined by 28.24 per cent to ₹25.35 crore in Q4FY17, on a year-on-year ba­sis, de­creas­ing from ₹35.33 crore in Q4FY16. The com­pany also posted de­crease in its profit be­fore in­ter­est, de­pre­ci­a­tion and tax (PBIDT) by 33.80 per cent to ₹34.51 crore in Q4FY17 on year-on-year ba­sis, against a PBIDT of ₹52.13 crore in Q4FY16.

On an an­nual ba­sis, the com­pany posted an in­crease in its net sales by 4.02 per cent to ₹718.61 crore in FY17, as com­pared to the pre­vi­ous fis­cal. The com­pany’s PAT de­creased by 14.42 per cent to ₹121.34 crore in FY17 on a yearly ba­sis. The com­pany’s PBIDT too got de­creased for the fis­cal 2017 to ₹156.48 crore, down by 20.62 per cent on a yearly ba­sis.

After our rec­om­men­da­tion, the share price of Just Dial dipped by about 23 per cent. The stock is on a down­ward trend, hence we had rec­om­mend in­vestors to exit.

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