Reduce Just Dial Ltd For Target Rs.830 - Yes Securities
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Pickup in growth at the cost of operating margin
Our view and valuation
Overall, it reported mixed performance for the quarter. While revenue growth was inline, the operating margin for the quarter was below expectation. The pickup in sequential revenue has been achieved with higher investment in sales; and focus on monthly plans. We expect that operating margin would remain subdued in FY23 as it invests in sales network and content enrichment to put the core B2C business back on growth trajectory. The B2C segment continues to face high competition from Google, Facebook and other vertical and horizontal players. The B2B segment is being scaled up and the current focus is to invest in better quality content that will drive traffic flow and monetization. We estimate revenue CAGR of 26.0% over FY22‐FY24E with average EBIT margin of 18.7%
We maintain REDUCE Rating on the stock with revised target price of Rs 830/share based on DCF valuation. Trades at PE of 23.6x on FY24E EPS.
Result Highlights
Reported revenue of Rs 1,667 mn( up 4.9% QoQ). The revenue growth was led by around 5.5% increase in the number of paid campaigns; While average revenue per paid campaign grew 1.3% QoQ. Reported EBITDA loss of Rs 61 mn( EBITDA margin ‐3.7%) compared to positive EBITDA of Rs 52 mn in Q3FY22. The decrease in EBITDA was due higher employee cost, which was up 10.8% QoQ.
Higher other income of Rs 352mn, contributed to positive PAT of Rs 221 mn in the quarter
Total listing grew to 31.9mn compared to 31.4mn as of Q3FY22.
Total paid campaigns grew by 5.5% QoQ to 461.4k, addition of 24,160 campaigns QoQ led by aggressive focus on monthly payment plans Total quarterly unique visitors grew by 1.5% QoQ to 144.8mn
Sales team hiring ramped up, sales strength up 26% QoQ & 22.6% YoY
Deferred Revenue stood at ₹ 3.4bn, up 3.8% QoQ and 2.4% YoY, lower growth due to higher focus on monthly plans
Cash and Investments stood at ₹ 38.2bn as on March 31, 2022 compared to ₹ 15.7 bn as on March 31, 2021 and ₹ 37.7bn as on December 31, 2021
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://yesinvest.in/privacy_policy_disclaimers
SEBI Registration number is INZ000185632
Above views are of the author and not of the website kindly read disclaimer
