Just Dial Ltd - B2C Transaction Enabler: Huge Potential - Emkay

Reco: BUY
CMP: Rs 1058
Target Price: Rs 1425

- JD's Master Application: 1) Make even non-paying listings to pay for transactions on JD's platform, 2) Better monetisation of non-category specific search (70% of total search)

- The online transaction enabler space across verticals is crowded; however, JD's strong SME network and mind space provide huge opportunities in the high-potential market

- Missing out on fast-changing consumer psyche in the digital world is the biggest risk to business, followed by inability to consolidate various verticals, leading to the loss of focus

- We roll over valuations on FY16E assigning 2.5% FCFE yield to arrive at an 18-month TP of Rs1425. At the TP, the implied PE is at 42x FY16 EPS, with a PEG ratio of 0.9x.

Source : Equity Bulls

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