Reduce Just Dial, target price Rs 830: Yes Securities

Yes Securities has reduce call on Just Dial Ltd. with a target price of Rs 830. The current market price of Just Dial Ltd. is Rs 800.15 Time period given by analyst is year when Just Dial Ltd. price can reach defined target.

Just Dial Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 6,828.54 crore) operating in Services sector.

Just Dial Ltd. key Products/Revenue Segments include Other Services, Interest, Software Services and Income From Financial Services for the year ending 31-Mar-2021.

Financials
For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 201.90 Crore, up 7.71 % from last quarter Total Income of Rs 187.44 Crore and up 5.57 % from last year same quarter Total Income of Rs 191.25 Crore. Company has reported net profit after tax of Rs 22.05 Crore in latest quarter.

Investment Rationale
Overall, it reported mixed performance for the quarter. While revenue growth wasinline, the operating margin for the quarter was below expectation. The pickup insequential revenue has been achieved with higher investment in sales; and focus onmonthly plans. We expect that operating margin would remain subdued in FY23 as itinvests in sales network and content enrichment to put the core B2C business back ongrowth trajectory.

The B2C segment continues to face high competition from Google,Facebook and other vertical and horizontal players. The B2B segment is being scaledup and the current focus is to invest in better quality content that will drive trafficflow and monetization. We estimate revenue CAGR of 26.0% over FY22‐FY24E withaverage EBIT margin of 18.7%.

Promoter/FII Holdings
Promoters held 77.64 per cent stake in the company as of 31-Mar-2022, while FIIs owned 3.21 per cent, DIIs 4.87 per cent.