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Just Dial is a leading classified advertising company with focus on B2C segment and is at an advanced stage to launch B2B products. The main strength of the company is its on the ground marketing team, which is well supported by tele callers. The focus on SME and Tier 2 & 3 cities is a good strategy. Recent performance has been soft due to macro factors and lock down led disruption which has resulted in lower ad spends, but with normalcy being restored, paid campaigns are scaling up. Over the past few years, there have been concerns about competition from Google, but revenues have been maintained. There is good scope for rerating of valuations if the B2B business scales up well, which is why we have a neutral weight rating despite stagnating B2C volumes – 11-06-2021 Price: 935.15 Rating: Neutral Weight Recommendation: Hold

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