Just Dial hits record high of Rs 676.60; rallies 11%

NEW DELHI: After a strong debut earlier this week, Just Dial rallied over 11 per cent on Friday to hit its fresh record high of Rs 676.60 on the Bombay Stock Exchange.

Just Dial finally closed 7 per cent higher at Rs 647.40. It hit a low of Rs 603 and a record high of Rs 676.60 in trade today.
The company, which provides search service through multiple platforms such as internet, mobile internet and telephone (voice), has already rallied over 20 per cent since its debut.

Just Dial, which raised Rs 950 crore through its IPO, listed at Rs 590 per share on Wednesday compared to its issue price of Rs 530 per share.

Just Dial was the biggest initial public offering (IPO) in calendar year 2013 so far. It drew a strong response from foreign institutional investors (FIIs) and high net-worth individuals.

Motilal Oswal initiated coverage on Just Dial with a 'Buy' recommendation. The company has the first mover advantage, strong brand, updated and accurate data base, said the brokerage firm.

The brokerage firm expects the company to post revenue CAGR of 33 per cent over FY12-15E, complimented by 560bp margin expansion on account of a shift in search mode from voice-based to internet and mobile-based search.

Just Dial has a monopoly in voice search and healthy return ratios justify premium valuation, the brokerage says.

Just Dial's Rs 950-crore IPO include marquee names like Tiger Global, Sequoia Capital and SAP Ventures, which sold 1.75 crore shares.

The PE investors have earned 850 per cent returns on their investments by selling the shares in the IPO.

"Although we offer our services on all the platforms, our revenue is consolidated and we just have one single package for all the advertisers," said VSS Mani, Founder and CEO, JustDial, in an interview with ET Now on Wednesday.

"Primarily, top 11 cities contribute to about 93 per cent of our revenues and 7 per cent of our revenues comes from remote cities, but this revenue share is going to grow because we are seeing a lot more growth in JustDial usage in tier 2, tier 3 cities," he added.