The shares of the Just Dial on Tuesday jumped around nine per cent, trading near a 52-week high to Rs 1024 per share on the BSE intraday. The stock, however, closed over seven per cent to Rs 1010.70 per share. Moreover, the brokerage is bullish on the share price of Just Dial. 

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While the company shares have jumped over 40 per cent from Rs 729.7 per share to Rs 1024 apiece in the last month. 

Amid lockdown worries, the company reported negative fourth-quarter results with a loss of Rs 214 crores, while the net sales declined by Rs 675 crores. EBITDA of the company fell by Rs 124 crores and margins by 22.9 per cent a year-on-year basis. 

Expecting revenues to improve with an easing of lockdowns and increase in digital penetration, ICICI Direct said the company is also promoting the download of the JD app by providing JD cash against download and referrals, it said, while believing that these initiatives, coupled with an improvement in realisation and increase in digitisation will drive B2C business in the longer run. 

However, the brokerage firm points out two key risks: The inability of the company to make significant inroads into the B2B market will adversely impact its growth prospects and Inability to improve margins will impact its profitability. 

The expected profit and net sales CAGR (FY21-23E) is around 20.5 per cent and sales 21.5 per cent, ICICI Direct said in its report. 

Just Dial is in its initial phase of branding and making JD Mart remunerative. Hence, it is planning to spend around 100-110 crore, of which around 50 crores were spent on IPL on JD Mart. The aim is to push for higher downloads and brand awareness, the brokerage report said. 

Just Dial began its operations in 1996 by offering local search services under the Just Dial brand. The website was launched in 2007. The main revenue generation for JD comes from the advertisers who list themselves with the company on various subscription and fee-based packages.