Justdial Ltd.
ISIN: INE599M01018 • Market Cap: ₹5,612 Cr
The 5-Pillar Quality Audit for Justdial Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (28.8%), Return on Capital Employed (12.0%), and equity compounding (9.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (15.6%) and 3Y PAT CAGR (19.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 11.14 vs PEG of 0.97 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.1%, backed by 13.1% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 15.6%)
Revenue has expanded at 15.6% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 19.2%)
Net earnings have compounded at 19.2% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 11.14)
Trading at a P/E multiple of 11.14, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Consumer Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Consumer Services space.
Quantitative Strategy Eligibility
Checking JUSTDIAL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 80/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Consumer Services Sector Peer Comparison
Compare JUSTDIAL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Justdial Ltd. (JUSTDIAL)Current | 80/100 | ₹5,612 Cr | 11.14 | 12.0% | 0.00 | — |
| Eternal Ltd. (ETERNAL) | 61/100 | ₹3.09 Lakh Cr | 713.64 | 2.9% | 0.00 | View |
| Avenue Supermarts Ltd. (DMART) | 66/100 | ₹2.60 Lakh Cr | 84.88 | 16.4% | 0.04 | View |
| Trent Ltd. (TRENT) | 74/100 | ₹1.57 Lakh Cr | 86.78 | 29.6% | 0.07 | View |
| Lenskart Solutions Ltd. (LENSKART) | 63/100 | ₹1.11 Lakh Cr | 169.67 | 8.4% | 0.03 | View |
| Indian Hotels Co. Ltd. (INDHOTEL) | 75/100 | ₹1.03 Lakh Cr | 48.02 | 16.0% | 0.00 | View |
Frequently Asked Questions: Justdial Ltd.
Q:What is the 5-Pillar Fundamental Score for Justdial Ltd. (JUSTDIAL)?
Justdial Ltd. has a RupeeTools Fundamental Score of 80/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (67/100), Financial Health (83/100), Growth (86/100), Valuation (95/100), and Ownership Quality (72/100).
Q:Is JUSTDIAL fundamentally strong for long-term investment?
Yes, JUSTDIAL exhibits solid fundamental strength with a 80/100 score, driven by a return on equity of 9.7% and a debt-to-equity ratio of 0.00.
Q:Does JUSTDIAL pass the Coffee Can Investing filter?
No. JUSTDIAL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does JUSTDIAL compare against other Consumer Services peers?
Within India's Consumer Services sector, JUSTDIAL trades at a P/E of 11.14 and generates an ROCE of 12.0%. Compare its 5-Pillar score of 80/100 against top sector peers like Eternal Ltd. (61/100), Avenue Supermarts Ltd. (66/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.