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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. The company has Rs. 1634 crores (Rs. 251 per share) as cash on its books. Excluding this, the residual business is available for a song, which is why we have an over weight rating. Past few years, there have been concerns about competition from Google, but revenues have been maintained. There is good scope for rerating of valuations – 21-08-2020 Price: 393.15 Rating: Over Weight Recommendation: Buy

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