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Looking for fundamental growth story? Pay attention to Just Dial

20-05-2014 • About Just Dial ($JUSTDIAL) • By InTwits

Just Dial is an attractive growth stock in Publishing industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story


Just Dial showed fast growth in the last financial year. Just Dial's revenue surged on 27.2% in FY2014. In addition to revenue Just Dial also keeps delivering EBITDA growth. It was 80.8% in FY2014

If we look for the longer period the company showed fast revenue growth of 36.9% from FY2011 to FY2014 annually. EBITDA surged on 58.6% from FY2011 to FY2014 annually.

Just Dial ($JUSTDIAL) financials for the last 5 years

mln. INR FY2010 FY2011 FY2012 FY2013 FY2014
Revenue7,2441,7962,5943,6284,613
Revenue growth, %-75.2%44.4%39.8%27.2%
SG&A, %
EBITDA2974566741,0071,821
EBITDA growth, %53.6%47.6%49.5%80.8%
EBITDA margin, %4.10%25.4%26.0%27.8%39.5%
Net Income1842865286851,206
Net Income margin, % 2.54%15.9%20.4%18.9%26.1%
 
CAPEX99192231361209
CAPEX/Revenue, %1.37%10.7%8.90%9.96%4.53%
Debt31000
Cash121201237239369
Net Debt/EBITDA-0.4x-0.4x-0.4x-0.2x-0.2x
 
ROIC, %52.9%50.3%58.7%32.4%34.2%
ROE, %34.4%36.6%53.1%25.7%25.1%

Profitability and return on investment


Margin expansion supported EBITDA growth. EBITDA margin surged on 11.7 pp from 27.8% to 39.5% in FY2014. If we look for the longer period EBITDA margin surged on 14.1 pp from 25.4% in FY2011 to 39.5% in FY2014.

We call Just Dial an attractive growth stock as together with the growth it delivers high ROIC at 34.2%. During the last three years it dropped - it was 50.3% in FY2011. For the last three years the average ROIC was 41.8%.

Net Income margin surged on 7.20 pp from 18.9% to 26.1% in FY2014. In the last 3 years the company's Net Income margin surged on 10.2 pp from 15.9% in FY2011 to 26.1% in FY2014.

Just Dial operates at ROE of 25.1%. It's average ROE for the last three years was 34.6%.

Capital expenditures (CAPEX)


In FY2014 Just Dial had CAPEX/Revenue of 4.53%. CAPEX/Revenue dropped on 6.15 pp from 10.7% in FY2011 to 4.53% in FY2014. It's average CAPEX/Revenue for the last three years was 7.80%.

Leverage (Debt)


The company has negative net debt at -0.2x Net Debt/EBITDA - at the same time with high growth. If we look for the longer period leverage surged on 0.24x from -0.44x in FY2011 to -0.20x in FY2014.

Valuation vs. comparable companies


The market closed today at 46.8x EV/EBITDA for Just Dial which is 192% higher than 16.0x Publishing peer group avearge calculated on the basis of 16 companies. The company trades at 70.9x P/E which is not surprisingly 120% higher than 32.3x Publishing industry avearge calculated based on 3 companies.

For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Just Dial traded at 52.8x EV/(EBITDA-CAPEX) which is higher vs. -0.1x Publishing peer group avearge calculated on the basis of 3 companies.

Peers in Publishing


Below you can find Just Dial benchmarking vs. other companies in Publishing industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top
D B Corp ($DBCORP)-50.0%12.4%13.7%19.3%
Hindustan Media Ventures ($HMVL)-44.5%15.6%6.6%14.7%
Ht Media ($HTMEDIA)-37.5%15.0%2.3%7.4%
 
Median (3 companies)-44.5%15.0%6.6%14.7%
Just Dial ($JUSTDIAL)-75.2%44.4%39.8%27.2%


Top companies by EBITDA margin, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top
D B Corp ($DBCORP)14.1%33.3%25.9%24.8%27.1%
Hindustan Media Ventures ($HMVL)2.8%17.0%16.3%17.7%20.8%
Ht Media ($HTMEDIA)9.2%20.6%18.1%18.4%15.2%
 
Median (3 companies)11.7%20.6%18.1%18.4%20.8%
Just Dial ($JUSTDIAL)4.1%25.4%26.0%27.8%39.5%


Top companies by CAPEX/Revenue, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top
Ht Media ($HTMEDIA)5.8%4.5%3.8%6.4%6.9%
Hindustan Media Ventures ($HMVL)2.5%5.7%7.7%1.2%5.8%
D B Corp ($DBCORP)2.5%11.8%8.9%3.6%5.5%
 
Median (3 companies)2.5%5.7%7.7%3.6%5.8%
Just Dial ($JUSTDIAL)1.4%10.7%8.9%10.0%4.5%


Top companies by ROIC, %

 FY2010 FY2011 FY2012 FY2013 FY2014
Top
D B Corp ($DBCORP)32.0%33.4%25.7%25.8%32.7%
Hindustan Media Ventures ($HMVL)20.8%23.0%17.7%18.3%22.3%
Ht Media ($HTMEDIA)13.3%16.8%14.7%14.2%10.9%
Next Mediaworks ($NEXTMEDIA)2.5%-5.6%-12.0%1.4%3.8%
 
Median (4 companies)17.0%19.9%16.2%16.2%16.6%
Just Dial ($JUSTDIAL)52.9%50.3%58.7%32.4%34.2%


Top companies by Net Debt / EBITDA

 FY2010 FY2011 FY2012 FY2013 FY2014
Top
Ht Media ($HTMEDIA)1.3x0.5x0.5x0.6x1.1x
Next Mediaworks ($NEXTMEDIA)3.7x11.9x1.9x1.0x
D B Corp ($DBCORP)0.8x0.3x0.2x0.1x0.0x
Hindustan Media Ventures ($HMVL)4.1x-0.2x-0.2x-0.2x-0.0x
 
Median (4 companies)2.5x0.4x0.2x0.4x0.5x
Just Dial ($JUSTDIAL)-0.4x-0.4x-0.4x-0.2x-0.2x