Just Dial demonstrated healthy growth in recent years
05-06-2015 • About Just Dial (
$JUSTDIAL) • By InTwits
Have you thought about Just Dial as a growth stock? Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Just Dial showed fast growth in the last financial year. The company's revenue surged on 27.9% in FY2015. At the same time Just Dial well managed its profitability and also showed EBITDA growth of 18.4% for the same period.
In the last 3 years Just Dial showed fast revenue growth of 31.5% from FY2012 to FY2015 annually. EBITDA surged on 47.4% from FY2012 to FY2015 annually.
Just Dial ($JUSTDIAL) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 1,796 | 2,594 | 3,628 | 4,613 | 5,898 |
|---|
| Revenue growth, % | | 44.4% | 39.8% | 27.2% | 27.9% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 456 | 674 | 1,007 | 1,821 | 2,157 |
|---|
| EBITDA growth, % | | 47.6% | 49.5% | 80.8% | 18.4% |
|---|
| EBITDA margin, % | 25.4% | 26.0% | 27.8% | 39.5% | 36.6% |
|---|
| Net Income | 286 | 528 | 685 | 1,206 | 1,388 |
|---|
| Net Income margin, % | 15.9% | 20.4% | 18.9% | 26.1% | 23.5% |
|---|
| |
| CAPEX | 192 | 231 | 361 | 209 | 681 |
|---|
| CAPEX/Revenue, % | 10.7% | 8.90% | 9.96% | 4.53% | 11.5% |
|---|
| Debt | 1 | 0 | 0 | 0 | 0 |
|---|
| Cash | 201 | 237 | 239 | 369 | 422 |
|---|
| Net Debt/EBITDA | -0.4x | -0.4x | -0.2x | -0.2x | -0.2x |
|---|
| |
| ROIC, % | 50.3% | 58.7% | 32.4% | 34.2% | 31.7% |
|---|
| ROE, % | 36.6% | 53.1% | 25.7% | 25.1% | 23.0% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 39.5% in FY2014 to 36.6% in FY2015. In the last 3 years EBITDA margin surged on 10.6 pp from 26% in FY2012 to 36.6% in FY2015.
Just Dial shows attractive ROIC at 31.7% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 58.7% in FY2012. For the last three years the average ROIC was 32.8%.
Net Income margin decreased on 2.60 pp from 26.1% to 23.5% in FY2015. If we look for the longer period the company's Net Income margin surged on 3.10 pp from 20.4% in FY2012 to 23.5% in FY2015.
Just Dial operates at ROE of 23.0%. It's average level of ROE for the last three years was 24.6%.
Capital expenditures (CAPEX)
To this fast growth Just Dial had to invest in CAPEX.The company's CAPEX/Revenue was 11.5% in FY2015. CAPEX/Revenue surged on 2.64 pp from 8.90% in FY2012 to 11.5% in FY2015. It's average CAPEX/Revenue for the last three years was 8.68%.
Leverage (Debt)
Just Dial has negative net debt at -0.2x Net Debt/EBITDA - at the same time with high growth. In the longer period leverage surged on 0.16x from -0.35x in FY2012 to -0.20x in FY2015.
Valuation vs. comparable companies
The company trades at 35.9x EV/EBITDA which is not surprisingly 158% higher than 13.9x Publishing industry avearge calculated based on 16 companies. The company trades at 56.1x P/E which is not surprisingly 91% higher than 29.4x Publishing industry avearge calculated based on 3 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 52.5x EV/(EBITDA-CAPEX) which is not surprisingly 2,800% higher than 0.0x Publishing industry avearge calculated based on 3 companies.
Peers in Publishing
Below we provide Just Dial benchmarking against other companies in Publishing industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Hindustan Media Ventures ($HMVL) | | 15.6% | 6.6% | 14.7% | 12.2% |
| D B Corp ($DBCORP) | | 12.4% | 13.7% | 19.3% | 8.1% |
| 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) | | 13.7% | 9.4% | 13.3% | 6.0% |
|---|
| Just Dial ($JUSTDIAL) | | 44.4% | 39.8% | 27.2% | 27.9% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Next Mediaworks ($NEXTMEDIA) | | | | | 31.4% |
| Sambhaav Media ($SAMBHAAV) | | | | | 30.7% |
| D B Corp ($DBCORP) | 33.3% | 25.9% | 24.8% | 27.1% | 28.1% |
| Jagran Prakashan ($JAGRAN) | 29.8% | 23.4% | 19.5% | 23.2% | 25.8% |
| Hindustan Media Ventures ($HMVL) | 17.0% | 16.3% | 17.7% | 20.8% | 21.0% |
| |
|---|
| Median (7 companies) | 25.2% | 20.7% | 19.0% | 22.0% | 25.8% |
|---|
| Just Dial ($JUSTDIAL) | 25.4% | 26.0% | 27.8% | 39.5% | 36.6% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top |
|---|
| Ht Media ($HTMEDIA) | 4.5% | 3.8% | 6.4% | 6.9% | 4.1% |
| D B Corp ($DBCORP) | 11.8% | 8.9% | 3.6% | 5.5% | 3.6% |
| Jagran Prakashan ($JAGRAN) | 15.1% | 11.2% | 6.6% | 5.3% | 3.1% |
| Hindustan Media Ventures ($HMVL) | 5.7% | 7.7% | 1.2% | 5.8% | 1.9% |
| |
|---|
| Median (4 companies) | 8.7% | 8.3% | 5.0% | 5.7% | 3.4% |
|---|
| Just Dial ($JUSTDIAL) | 10.7% | 8.9% | 10.0% | 4.5% | 11.5% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| D B Corp ($DBCORP) | 33.4% | 25.7% | 25.8% | 32.7% | 32.9% |
| Jagran Prakashan ($JAGRAN) | | 19.7% | 11.3% | 19.7% | 20.8% |
| Hindustan Media Ventures ($HMVL) | 23.0% | 17.7% | 18.3% | 22.3% | 19.6% |
| Ht Media ($HTMEDIA) | 16.8% | 14.7% | 14.2% | 10.9% | 8.6% |
| Sambhaav Media ($SAMBHAAV) | 8.2% | 8.7% | 7.6% | | |
| |
|---|
| Median (7 companies) | 12.5% | 14.7% | 11.3% | 19.7% | 20.2% |
|---|
| Just Dial ($JUSTDIAL) | 50.3% | 58.7% | 32.4% | 34.2% | 31.7% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Ht Media ($HTMEDIA) | 0.5x | 0.5x | 0.6x | 1.1x | 0.6x |
| Hindustan Media Ventures ($HMVL) | -0.2x | -0.2x | -0.2x | -0.0x | 0.3x |
| Jagran Prakashan ($JAGRAN) | 0.5x | 2.0x | 1.5x | 1.2x | 0.1x |
| Cyber Media (India) ($CYBERMEDIA) | 4.8x | 4.1x | 6.8x | | 0.0x |
| Next Mediaworks ($NEXTMEDIA) | 11.9x | | 1.9x | 1.0x | 0.0x |
| |
|---|
| Median (7 companies) | 0.5x | 0.5x | 1.5x | 0.5x | 0.0x |
|---|
| Just Dial ($JUSTDIAL) | -0.4x | -0.4x | -0.2x | -0.2x | -0.2x |
