Just Dial: Sustain Blw 585-605, may dial again 445-375

Consecutive closing below 445-375 zone, JD may fall up to 295-235

Buy back not so much attractive as it apparently seems;

 Such buy back also proves that the company has no viable business plan to deploy its cash

And its returning its cash to the big shareholders.

CMP: 552

Sell either below 585 or on rise around 605-625-650;

TGT1: 491-445*-425-375 (1-3 M)

TGT2: 345-315-295*-235 (12-24M)

TSL>  670

Note: Consecutive (3 days) closing above 670 for any reason, JD may further rally towards 715-760 & 800-840* and 885-950-1105-1250 zone in the alternative bullish case scenario.

With actual TTM EPS of 21.80, JD is quoting at around 25 PE against Google's average PE of 30.Comparison to Google's free search popularity and ad revenue JD is nothing and paid search concept may be a fiction. 

Reasonable PE of JD may be around 20-15, even after considering their "Search Plus" and planned "JD-OMNI" application (which is also dubbed as "Mother of all application" by the management !!).

JD's proposed buy back of shares at price up to 1550 per share for around 11 lac shares (record date 04/12/2015) translates that the company will buy back only 2-3% from the market ( i.e. on average 2-3 shares per 100 shares). 

As on 02/12/2015 (T+2), closing price of JD was around 915. Clearly, big investors, who sold some of their holdings after that, may now covering that for tendering the same for buy back by the company, which will start from 25/02/2016. Investors has to pay also 10% capital gain tax for such offline buy back process. Thus the buy back is not looked so rosy as it apparently seems.

As par BG metrics and current market scenario:

(based on actual TTM & projected FWD EPS)

Present median valuation of JD may be around: 485 (FY:15/TTM)

Projected fair valuation might be around: 455-485-520 (FY:16-18/FWD)

SCRIP	EPS(TTM)	BV(Act)	P/E(AVG)	Low	High	Median	200-DEMA	10-DEMA
JUSTDIAL	21.8	95.46	15	552.69	411.68	482.19	934.16	518.3

JUSTDIAL

19.25

114.5

15

519.36

386.86

453.11

934.16

518.3

JUSTDIAL

21.75

137.75

15

552.06

411.21

481.64

934.16

518.3

JUSTDIAL

25.05

165.85

15

592.46

441.31

516.88

934.16

518.3

Analytical Charts: