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Just Dial now 3rd most valuable media co, moves up a rank

Posted by fairval on December 10, 2013

Came across a broker report with a target price of (hold your breath) Rs 1500 for Just Dial. To put this in context, in May’13 when the IPO came, the offer price was Rs 530, and it wasn’t a cheap IPO at over 50x trailing PE. However, the prevailing view at that time, correctly, was that it was worth a Buy at that price. Just Dial now quotes at a PE of 120x FY13 and over 75x FY14 expected eps.

This blog had in a post on 25 June pointed out how Just Dial was the 4th most valuable media co. Well now, it is the 3rd. In June, it was less than 30% of Sun’s market cap, now the gap is less than half. The brokers’ target price will take Just Dial’s M cap to Rs 10,000 crore, or just 32% less than Sun TV. Sun, btw, makes more net profit than Just Dial’s revenue.

While most other media rankings are unchanged, the other big mover is Info Edge, which has gained over 40%, and is now the 5th most valuable stock, ahead of DB Corp, Jagran, Just Dial has just launched a transaction service, which facilitates order completion, it seems this is a direct competition to Info Edge’s subsidiary Zomato. Interesting times ahead!

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