Subscribe to Just Dial IPO, advises KM Global Finserv
Brokerage house KM Global Finserv has recommended investors to subscribe to Just Dial's IPO for listing gains, in its research report dated May 21, 2013.
According to KM Global Finserv, Just Dial has built a strong brand in the local search space which is being monetized by capturing marketing spends of local businesses. We expect heavy institutional interest for this issue due to its unique business model and rapid revenue growth.
Riding the Growth in Online Advertising - The online advertising market is growing rapidly since it reaches the target audience at a cheaper cost as compared to traditional media. Justdial has taken advantage of this shift as the number of campaigns on its platform have grown from 40,500 in March, 2009 to 195,100 in March, 2013.Positive Cash Flows - Justdial has shown consistent and continuous revenue growth every year. The company's negative working capital cycle and impressive operating leverage have helped it deliver a steady growth in cash flows and a high return on equity.Also Read: Just Dial IPO gets good response; subscribed 70% on Day 2Just Dial Ltd is India's leading local search engine. It is a technology based company providing information about local businesses, products and services across India via Internet, mobile, Telephone voice and text messages (SMS). Justdial is quick and efficient at providing relevant directory information to users. The company is monetizing its database by providing featured listings to advertisers and moving their campaigns to the top of the queue.Subscribe to the issue, says the research firm.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
