Analyst's Diary: This cash-rich consumer tech stock is an anomaly

Remember Amitabh Bachchan's '888-88-888-88' TV ad slogan from 2016? It put Just Dial on the map as India's leading local search engine, connecting millions of consumers to small businesses or SMEs (small and medium enterprises). Today, backed by Reliance Industries, which holds 67 per cent in the company, the online search service provider could prove to be a dividend goldmine in an industry often rife with cash burn. Here's why we say this: As of Q2 FY25, Just Dial held Rs 4,950 crore in cash and investments. It boasts an annualised profit after tax (PAT) of Rs 480-500 crore, which management intends to dish out mostly as dividends. For investors, this could translate to a juicy 5 per cent dividend yield based on its Rs 10,000 crore market cap. But should the dividend reward be the only determinant for your investing decision? Or can it be a solid bet for non-dividend seekers, too? Let's find out by revisiting the business and its prospects. Seizing the B2B opportunity Just Dial offers local search for different business needs and services to users across India through its multiple platforms like website, mobile apps and a helpline number. The compa