1. At a Glance
Just Dial — the OG “phone-a-friend” of Indian business listings — still refuses to die despite Google Maps, Instagram ads, and WhatsApp groups slowly eating its lunch. With ₹5,429.8 Cr sitting in the bank and a P/E that makes Zomato’s investors cry in value-investor relief, the company reported Q1 FY26 net profit of ₹159.6 Cr (+13% YoY) on revenue of ₹297.9 Cr (+6.2% YoY). They still aren’t paying a dividend, because apparently hoarding cash is the new investor love language.
2. Introduction
Remember those days when you’d call 8888888888 to find the nearest dosa joint? That’s Just Dial — the last surviving dinosaur of India’s pre-Google era internet. While competitors evolved into full-blown e-commerce and super-app ecosystems, JD stuck to local search and ads, quietly raking in steady profits and amassing a war chest large enough to buy back your childhood home in Mumbai (and still have enough left to buy the neighbour’s flat).
Owned 74.15% by Reliance (read: Mukesh’s ‘miscellaneous income’ portfolio), Just Dial is now more of a fintech-grade cash vault than a growth story. Yet, the financials are too healthy to ignore — almost debt-free, solid margins, and cash flow that screams “please invest me somewhere.”
The only problem? Its working capital days exploded to a galaxy-sized 1,403 days, meaning they’re effectively lending out the Yellow Pages for free.
3. Business Model (WTF Do They Even Do?)
Just Dial monetises a giant business directory via:
- Paid Listings & Ads: Businesses pay to appear higher in search results (basically, SEO without Google).
- Lead Generation: Passing user inquiries to businesses for a fee.
- Platform Reach: App, mobile web, desktop, call centres, and SMS.
Revenue is ~70% from top 11 Indian cities, with
an army of ~12,000 telesales & marketing folks covering 11,000+ pincodes.
Translation: half tech company, half army of humans convincing plumbers to pay for premium listings.
4. Financials Overview
Fresh P/E = Current Price ₹828 ÷ Latest Annualised EPS (₹18.77 × 4) = ₹828 ÷ ₹75.08 ≈ 11.0.
That’s almost “value stock” territory for a consumer internet play.
FY25 & Q1 FY26 Snapshot:
- Revenue (FY25): ₹1,142 Cr → TTM ₹1,159 Cr (+1.5% YoY)
- Operating Profit: ₹335 Cr → OPM 29%
- PAT (FY25): ₹584 Cr → TTM ₹603 Cr
- Q1 FY26: ₹297.9 Cr revenue, ₹159.6 Cr net profit, OPM 29%
Commentary: Other income (₹427 Cr TTM) is almost 70% of PAT — the investments are doing as much heavy lifting as the core business.
5. Valuation
We do 3 ways:
Method 1 – P/E:
Industry median P/E (peers like Indiamart, InfoEdge) ≈ 30×.
Fair Value = ₹75.08 EPS × 20–25× = ₹1,501 – ₹1,877 Cr (per share ₹1,500–₹1,875).
Conservative because JD’s growth is slower.
Method 2 – EV/EBITDA:
EV = ₹7,039 Cr mcap – ₹5,430 Cr cash ≈ ₹1,609 Cr.
TTM EBITDA ≈ ₹341 Cr → EV/EBITDA = 4.7×.
Sector average ≈ 12× →
