Just Dial (JUSTDIAL)

FairStock Score: 44/100 — MIXED

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹544.60, Just Dial is trading barely above its book value of ₹510.14, with a P/E of 8.18. That immediately gets my attention—Mr Market is offering an earnings yield of roughly 12%. But Graham always taught me that cheap can be a trap if the business is mediocre. The returns tell a mixed story: ROE of 12.85% is reasonable, but ROCE of only 7.11% tells me capital is not being deployed into especially productive activities. The balance sheet is safe: debt/equity of 0.02 and promoter holding of 74.15% align the people running the shop with my interests. What bothers me is the growth. Sales are up only 6.39% and profit barely 2.81%. With a PEG of 1.78, this is not a bargain on a growth-adjusted basis. The latest quarter, though, showed decent operating traction: ₹306 Cr of sales produced ₹118 Cr of net profit, a nearly 39% margin. However, one quarter does not make a compounder. The zero dividend is another issue for a slow-growing, almost debt-free business; shareholders should be getting cash back if reinvestment opportunities are thin. Also, the stock fell from ₹878.60 to ₹480.50 before recovering to ₹544.60—that range tells me the market has no conviction in a smooth upward story. Finally, the stated free cash flow of ₹256.29 lakh Cr is impossible to reconcile with a ₹4,679 Cr market cap; I would not trust any conclusion built on that number until the company provides a clean cash-flow statement. Overall, this is a steady but slow business. At the right price it may offer value, but growth and capital allocation need to improve before I call it a great investment.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer