Just Dial Q1 Results Review - Clarity Emerging On Cash Redistribution Should Drive Re-Rating: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We maintain Buy on Just Dial Ltd. with a revised target price of Rs 1,418 (from Rs 1,260) based on 18 times one-year forward enterprise value/Ebitda (earlier 14 times) multiple as we roll over by six months. Key risks:No clarity emerging on profit distribution in the near term; and slower-than-expected growth in paid campaigns, listings etc..In Q1 FY25, Just Dial's revenue growth slowed a tad given a high base. However, cost savings and synergies from the parent organisation helped Just Dial to beat Ebitda margin our estimates. We expect the B2B business to grow faster than the B2C business, given better monetisation opportunities in the B2B vertical (realisation-led growth). Management stated that the company was actively evaluating means to distribute incremental cashflows generated from both core operations and treasury income to all shareholders in a tax efficient manner. For context, cash generated in Q1 FY25 was Rs 1.3 billion, implied run rate of ~Rs 5.5 billion in FY25E. Given the improving visibility of cash utilisation (which has been an overhang for the stock), we think Just Dial is likely to re-rate. .Click on the attachment to read the full report:.LTIMindtree Q1 Results Review - High Transformational Deals, AI Infusion In Focus: IDBI Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Just Dial Q1 Results Review - Clarity Emerging On Cash Redistribution Should Drive Re-Rating: ICICI Securities

Given the improving visibility of cash utilisation (which has been an overhang for the stock), the brokerage thinks Just Dial is likely to re-rate.

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Just Dial Q1 Results Review - Clarity Emerging On Cash Redistribution Should Drive Re-Rating: ICICI Securities

Given the improving visibility of cash utilisation (which has been an overhang for the stock), the brokerage thinks Just Dial is likely to re-rate.

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