About six years ago, Just Dial Ltd, the online classifieds company, had a market capitalization of ₹13,000 crore. Now, its value has dwindled to ₹2,000 crore.
While the drop in value itself is striking, it’s also interesting to note that in end-December, the company had cash worth ₹1,500 crore on its books.
In other words, the core business is being valued at merely ₹500 crore. “We note that investments are mainly in the form of debt funds with very little equity exposure...
Just Dial has been regularly returning cash to shareholders through buybacks and has a clean history, particularly as far as the use of cash is concerned," said analysts at Jefferies India Pvt.