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Just dial is 100% debt free Indian Local search service company which that provides information on various businesses, products and services to users who can provide ratings and reviews as well. It provides services through multiple platforms such as internet, mobile internet, over the telephone (voice) and text (SMS). Company has recently announced the buyback of shares on proportional basis at a price of ₹ 700 per Equity Share when its shares are currently trading at almost 370 Rs.


Incorporated in the year 1993,JDL is a Mid Cap company operating in Services sector. Its internet and mobile internet services were launched in 2007. Justdial recently launched the newest version of its JD App, which is an All-inOne App, replete with features like Map-aided Search, Live TV, Videos, News & Real-Time Chat Messenger, to make the life of the consumer infinitely smoother & more engaging. As of Q2FY20, the company is running ~0.53mn campaigns for paid advertisers and has 27.6mn listings.

New features to enhance offerings JDL, with the launch of its advertising campaign, has also started adding features—internal messenger and traffic analytics—to enhance its offerings to paid clients. JDL has also initiated transaction-oriented services for its users. These services aim at making several day-to-day tasks conveniently actionable and accessible to users from one App. With this step, Justdial is transitioning from being purely a provider of local search and related information to being a direct/ indirect enabler of such transactions. 

Apart from this, Justdial has also launched JD Pay, a unique solution for quick digital payments for its users and vendors. The company expects that its renewed focus on tier 2 & 3 cities along with the new services offerings will enable it to sustain growth and earnings momentum going forward.

Justdial has also recently launched an end-to-end business management solution for SMEs, through which it intends to transition thousands of SMEs to efficiently run business online and have their adequate online presence via their own website, mobile site.  

Covid Effects

As soon as the lockdown started, Just Dial saw a 55%-60% drop in traffic. The average daily traffic dropped about 49% from December to February levels. However JDL has seen some recovery in May and traffic was back to about 65%-68% of pre-COVID-19 levels. This was because of cut in advertising expenditure that is JDL spent about ₹12.6 crore on advertising, verses about ₹18 to ₹19 crore a quarter a cut of almost 90%. As things improve, Just Dial will step up its advertising.

The company used the downtime during the lockdown to “create enriched content” for their B2B listings Just Dial intends to shortly launch a separate website and app focused on B2B vendors and products. The company is banking on “optimization and efforts on the B2B side” to improve its traffic and revenue in coming quarters.

Revenue affected: New revenue was affected almost 80% compared to pre-COVID-19 levels in April, and overall collections were 35% of pre-COVID-19 levels. In May, new revenue had started picking up. However, this pick up will be gradual since all geographies and offices were operating at a limited capacity. Just Dial’s revenue comes from existing monthly payment customers, and from new customers who pay for listings on the website and app.

Operational Numbers

JDL had 138.9 million quarterly unique visitors however it was a 11.5% QoQ decrease from 157 million in Q3FY20.

  • Mobile site and app (80%): 111.2 million, 13% fall QoQ decrease from 127.9 million; 0.8% YoY increase from 110.4 million
  • Desktop/PC (15%): 21.1 million, 2% QoQ decrease from 21.6 million; 2.5% YoY increase from 20.6 million
  • Voice (5%): 6.6 million, 13.4% QoQ decrease from 7.6 million in Q3FY20 and 18.6% YoY decrease from 8.1 million in Q4FY19, in line with a general historical decline in terms of phone service

Cumulative app downloads stood at 26.6 million registering 1.9% QoQ as compared to Q3FY20 .

Active listings stood at 29.4 million registering increase of 2.7% QoQ as compared to Q3FY20.

For more information please refer Investor Presentation-:


  • Net Sales at Rs 234.95 crore in March 2020 up 1.16% as compared to March 2019.
  • Quarterly Net Profit at Rs. 76.07 crore in March 2020 up 21.61% as compared to March 2019.
  • EBITDA stands at Rs. 112.51 crore in March 2020 up 23.54% as compared to March 2019.
  • Just Dial EPS has increased to Rs. 11.70 in March 2020 up 21% as compared to March 2019.
  • JDL has compounded sales growth of 14% and 10% over 5 and 3 year period respectively.
  • JDL has compounded Profit growth of 11% and 14% over 5 and 3 year period respectively.
  • Company has solid Ops of above 20% over last 2 years.
  • JDL is 100% debt free.
  • JDL has investments worth Rs 1552 cr and Cash and Equivalents of Rs 40 cr thereby having total value of Assets ( Investments + Cash) at 245 Rs/Share.

Mutual Fund Holdings


The board of directors of the company, at its meeting held today April 30 has approved the proposal for buyback of up to 31,42,857 equity shares, at a maximum price of Rs. 700 per equity share payable in cash, for an aggregate maximum amount of up to Rs 220 crore. The buyback represents 4.84 per cent of the total paid-up equity share capital of the company. For more details please check the attached Pdf.

Key Risks involved with just dial

  • Increasing competition in internet space 
  • Slower than expected growth in paid campaigns and traffic 
  • Significant decline in realizations due to penetration in the tier 2/3 cities 

Sector Outlook

Based on a report by consultancy RedSeer, business-to-business (B2B) e-commerce market currently at $1.7 billion, is expected to grow at 80% CAGR to reach $60 billion by 2025. In comparison, businessto-consumer (B2C) e-commerce market, at $18 billion currently, is growing at 40% CAGR. 

The B2B segment accounts for 18-20% of the Justdial’s total revenue and the company is now focusing on this segment (around 140,000 businesses) by leveraging the Search Plus platform which has several features such as social platform, news segment and (RFQ’s) request for quotation (which is being developed currently). Management is increasingly looking at monetization of leads and RFQs generated on the platform, tapping into the B2B segment . Although a late comer, Justdial has strong traffic share and brand recall, platform and feet-on-the-street sales force to cease the opportunity in B2B space.


Just Dial is a leading local search services company in India. With the thrust on more usage of make in India products and government changing policies to promote local business Just dial is set to benefit big. Introduction of new features to enhance offerings and increase in price per paid campaign, RoI on ad spends for paid customers may significantly add value to JDL. The addition of new b2b portal is also going to add significantly the the JDL revenue in the coming period.

Furthermore with consistent Opm of above 20-25%,  considering the company’s robust cash generation , high returns ratios and being completely debt free JDL is poised to attract higher valuations.

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.

Users are requested to do their own research before taking any decision. DARKHORSESTOCKS or any of its members will not be responsible for any loss.


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