Fairval

Notes on Indian equities, sectors and economy

Posts Tagged ‘Sun TV’

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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Just Dial is now the 4th most valuable media stock in India

Posted by fairval on June 25, 2013

Just Dial seems to have done well since listing. Having gained over 15% from the IPO price, it is now ranked 4 amongst Indian media stocks. This makes it more valuable than all listed print stocks, radio stocks, and behind only 3 stocks – 2 TV broadcasters cum distributors, and one pure TV distributor (DTH co).

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It also seems to have decisively left behind Info Edge, the other classified advertising company, which is still struggling to grow beyond recruitments.

Just Dial is tho now perhaps the most expensive stock on Indian stock markets, quoting at over 60x trailing. It needs to grow earnings at >50% CAGR for shareholders to make returns from these price levels.

Posted in IPO, Media and entertainment, Valuation | Tagged: , , , | Leave a Comment »