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Looking for growth? Don't miss Just Dial with its track record of fast growth

27-05-2016 • About Just Dial ($JUSTDIAL) • By InTwits

Have you thought about Just Dial as a growth stock? 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. The company's revenue surged on 17.1% in FY2016. EBITDA also increased considerably: 18.0% for the same period.

If we look for the longer period Just Dial showed fast revenue growth of 24.0% from FY2013 to FY2016 annually. EBITDA surged on 36.2% from FY2013 to FY2016 annually.

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

mln. INR FY2012 FY2013 FY2014 FY2015 FY2016
Revenue2,5943,6284,6135,8986,908
Revenue growth, %39.8%27.2%27.9%17.1%
SG&A, %
EBITDA6741,0071,8212,1572,545
EBITDA growth, %49.5%80.8%18.4%18.0%
EBITDA margin, %26.0%27.8%39.5%36.6%36.8%
Net Income5286851,2061,3881,419
Net Income margin, % 20.4%18.9%26.1%23.5%20.5%
 
CAPEX231361209681948
CAPEX/Revenue, %8.90%9.96%4.53%11.5%13.7%
Debt00000
Cash237239369422337
Net Debt/EBITDA-0.4x-0.2x-0.2x-0.2x-0.1x
 
ROIC, %58.7%32.4%34.2%31.7%33.3%
ROE, %53.1%25.7%25.1%23.0%21.1%

Profitability and return on investment


Margin expansion supported EBITDA growth. The company's EBITDA margin increased slightly on 0.200 pp from 36.6% to 36.8% in FY2016. In the last 3 years EBITDA margin surged on 9 pp from 27.8% in FY2013 to 36.8% in FY2016.

Just Dial shows attractive ROIC at 33.3% for the last 12 months which assumes stable development model. During the last three years it increased slightly - it was 32.4% in FY2013. It's average ROIC for the last three years was 33.1%.

Just Dial showed big decline in Net Income margin of 3 pp from 23.5% to 20.5% in FY2016. In the last 3 years Just Dial showed Net Income margin growth of 1.60 pp from 18.9% in FY2013 to 20.5% in FY2016.

Just Dial operates at ROE of 21.1%. For the last three years the average ROE was 23.1%.

Capital expenditures (CAPEX)


To this fast growth Just Dial had to invest in CAPEX.Just Dial's CAPEX/Revenue was 13.7% in FY2016. Just Dial showed fast CAPEX/Revenue growth of 3.76 pp from 9.96% in FY2013 to 13.7% in FY2016. It's average level of CAPEX/Revenue for the last three years was 9.93%.

Leverage (Debt)


Having such a fast growth profile the company keeps negative net debt at -0.1x Net Debt/EBITDA. In the longer period Just Dial's leverage surged on 0.11x from -0.24x in FY2013 to -0.13x in FY2016.

Valuation vs. comparable companies


The company trades at 17.6x EV/EBITDA which is 28.3% lower than 24.5x Publishing industry avearge calculated based on 16 companies. The market closed today at 31.8x P/E for Just Dial which is 49.1% higher than 21.3x Publishing peer group avearge calculated on the basis of 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 28.1x EV/(EBITDA-CAPEX) which is 12,600% higher than 0.2x 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, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top
Hindustan Media Ventures ($HMVL)15.6%6.6%14.7%12.2%
D B Corp ($DBCORP)13.7%19.3%8.1%0.6%
Ht Media ($HTMEDIA)15.0%2.3%7.4%4.0%
Jagran Prakashan ($JAGRAN)11.0%12.3%11.9%3.9%
 
Median (4 companies)15.0%9.4%13.3%6.0%0.6%
Just Dial ($JUSTDIAL)39.8%27.2%27.9%17.1%


Top companies by EBITDA margin, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Next Mediaworks ($NEXTMEDIA)31.4%
Sambhaav Media ($SAMBHAAV)30.7%
D B Corp ($DBCORP)25.9%24.8%27.1%28.1%26.1%
Jagran Prakashan ($JAGRAN)23.4%19.5%23.2%25.8%
Hindustan Media Ventures ($HMVL)16.3%17.7%20.8%21.0%
 
Median (7 companies)20.7%19.0%22.0%25.8%26.1%
Just Dial ($JUSTDIAL)26.0%27.8%39.5%36.6%36.8%


Top companies by CAPEX/Revenue, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top
Ht Media ($HTMEDIA)3.8%6.4%6.9%4.1%
D B Corp ($DBCORP)8.9%3.6%5.5%3.6%9.9%
Jagran Prakashan ($JAGRAN)11.2%6.6%5.3%3.1%
Hindustan Media Ventures ($HMVL)7.7%1.2%5.8%1.9%
 
Median (4 companies)8.3%5.0%5.7%3.4%9.9%
Just Dial ($JUSTDIAL)8.9%10.0%4.5%11.5%13.7%


Top companies by ROIC, %

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
D B Corp ($DBCORP)25.7%25.8%32.7%32.9%28.2%
Jagran Prakashan ($JAGRAN)19.7%11.3%19.7%20.8%
Hindustan Media Ventures ($HMVL)17.7%18.3%22.3%19.6%
Ht Media ($HTMEDIA)14.7%14.2%10.9%8.6%
Arnav Corporation ($ARNAVCORP)
 
Median (8 companies)14.7%11.3%19.7%20.2%28.2%
Just Dial ($JUSTDIAL)58.7%32.4%34.2%31.7%33.3%


Top companies by Net Debt / EBITDA

 FY2012 FY2013 FY2014 FY2015 FY2016
Top 5
Ht Media ($HTMEDIA)0.5x0.6x1.1x0.6x
Hindustan Media Ventures ($HMVL)-0.2x-0.2x-0.0x0.3x
Jagran Prakashan ($JAGRAN)2.0x1.5x1.2x0.1x
Cyber Media (India) ($CYBERMEDIA)4.1x6.8x0.0x
Next Mediaworks ($NEXTMEDIA)1.9x1.0x0.0x0.0x
 
Median (7 companies)0.5x1.5x0.5x0.0x0.1x
Just Dial ($JUSTDIAL)-0.4x-0.2x-0.2x-0.2x-0.1x


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