Just Dial Limited has ₹5,500 cr. Cash & PE Ratio of 11 — Value Pick or Value Trap?

Описание: Learn on the Go | Episode 10

Some Useful Resources:
▸ ICICI Securities Research Report (Oct 2025): https://images.assettype.com/bloomber...
▸ JM Financial Research Report (Oct 2025): https://investmentguruindia.com/edito...[JMFL]JustDial_RU_14102025.pdf
▸ Article on Substack (Jul 2025): https://mydomicile.substack.com/p/jus...
▸ Join my newsletter at https://shankarnath.substack.com/

Just Dial Limited — a company with ₹5,500 crores in cash, zero debt and a PE ratio of just 11.6 — has seen it's stock fall by almost 40% in the last one year. In this episode of Learn on the Go, I explore the fascinating story of this once hot tech-enabled local search platform which is now a microcap mystery where 85% of its market capitalization is cash. This video breaks down what’s really happening beneath the surface: from slowing revenue growth and murky capital allocation, to the growing influence of its majority shareholder

We’ll talk about:
▸ Why Just Dial’s market cap (~₹6,600 Cr) is almost equal to its cash reserves (~₹5,500 Cr)
▸ How “Other Income” is now larger than its operational profit — and what that means
▸ The company’s EV/EBITDA of 2.9 and why it looks too good to be true
▸ Why valuation multiples crashed from 150x to 11x in just three years
▸ Whether Just Dial is a case of massive optionality or management apathy
▸ And finally, what investors can learn from cash-rich, return-poor companies

This isn’t a video about whether you should buy or sell Just Dial. It’s about understanding how a company can look cheap on paper but still stay stuck for years. Because sometimes, the story isn’t about growth — it’s about what management does (or doesn’t do) with all that cash

⚠️ This video is for educational purposes only. It should not be treated as investment advice or a stock recommendation. Please do your own research or consult a financial advisor before making any investment decisions and kindly read the disclaimer below in this description

👉 Video Chapters:
00:00 Everyone's Chasing the Lenskart IPO
01:04 Financials of Just Dial Limited
02:42 High Cash and Investment Number in Balance Sheet
04:35 The Curious Case of Just Dial Limited
05:39 Business Overview of Just Dial
06:47 Just Dial's Search Business
07:31 Accrued Revenue vs. Received Revenue (with example)
08:29 Just Dial's Transaction Business
09:11 EV-EBITDA Ratio
11:39 Why has Just Dial's Stock Price Fallen by almost 40% in an year?
11:57 Reason 1: Weakness in Growth
13:51 Reason 2: High Competition & Disruption Fears
14:34 Reason 3: Lack of Clarity on Capital Allocation Policy
15:23 Reliance Retail Ventures Limited buys Majority Stakes in Just Dial Limited
16:01 Management Commentary on Deployment of Just Dial's ₹5,500 crores of Cash
18:00 Scenario 1: Dividends
20:25 Scenario 2: Related Acquisitions
20:54 Scenario 3: Buyback & Delisting
21:42 Just Dial Limited's Board of Directors
23:06 Dividends by Just Dial Limited
23:36 Lessons Learnt from Just Dial Limited Analysis
25:27 Shankar Nath's Viewpoints

#justdial #fundamentalanalysis #StockAnalysis #shankarnath

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