Just Dial Shares Get ‘Buy’ Upgrade From ICICI Securities
ICICI Securities has upgraded Just Dial to ‘Buy’, citing attractive valuations after the recent price correction. The brokerage kept its target price unchanged at Rs 968, valuing the stock at 6x FY27E EV/EBITDA (implied five times FY28E). This upgrade comes after Just Dial reported its Q3 FY26 results, which showed a 6.4% YoY revenue growth, with Ebitda margin expanding by 102 basis points YoY, driven by lower employee costs following headcount reductions in Q2.
Q3 FY26 Results: Key Highlights
In Q3 FY26, Just Dial reported a revenue growth of 6.4% YoY, which is a significant improvement from the previous quarter. The company’s Ebitda margin also expanded by 102 basis points YoY, driven by lower employee costs. This is a positive sign for the company, as it indicates that the cost-cutting measures implemented in Q2 are starting to bear fruit.
The company’s revenue growth was driven by an increase in search queries, which rose by 10.4% YoY. This is a positive sign for the company, as it indicates that the demand for its services is increasing. However, the company’s revenue growth was partially offset by a decline in average revenue per user (ARPU), which fell by 3.5% YoY.
ICICI Securities’ Upgrade: What It Means For Investors
ICICI Securities’ upgrade of Just Dial to ‘Buy’ is a significant development for investors. The brokerage’s target price of Rs 968 implies a potential upside of 15% from the current market price. This upgrade is based on the company’s attractive valuations, which have become more compelling after the recent price correction.
The upgrade is also driven by the company’s improving profitability, which is expected to continue in the coming quarters. The company’s Ebitda margin is expected to expand further, driven by lower employee costs and increasing revenue growth.
However, investors should note that the upgrade is not without risks. The company’s revenue growth is dependent on the growth of the Indian economy, which is facing several challenges, including a slowdown in consumer spending and a decline in business confidence.
Indian Economy: Challenges And Opportunities
The Indian economy is facing several challenges, including a slowdown in consumer spending and a decline in business confidence. This has resulted in a decline in demand for goods and services, which has affected the revenue growth of several companies, including Just Dial.
However, the Indian economy is also expected to recover in the coming quarters, driven by the government’s fiscal stimulus and the Reserve Bank of India’s (RBI) monetary policy easing. This is expected to result in an increase in consumer spending and business confidence, which will drive demand for goods and services.
Investors can stay ahead of the curve by following the latest news and updates on the Indian economy and the stock market news. They can also use technical analysis tools, such as charts and indicators, to identify trends and patterns in the market.
Technical Analysis: Just Dial Shares
Just Dial shares have been trading in a range-bound pattern, with the stock price oscillating between Rs 800 and Rs 900. The stock has been facing resistance at the Rs 900 level, which has resulted in a decline in the stock price.
However, the stock is expected to break out of this range in the coming weeks, driven by the upgrade from ICICI Securities and the improving profitability of the company. Investors can use technical analysis tools, such as moving averages and Relative Strength Index (RSI), to identify trends and patterns in the stock.
Investors can also use internal linking to stay ahead of the curve, by following the latest news and updates on Just Dial shares and the Indian stock market. They can also use external linking to access more information on the company and the industry.
Conclusion
In conclusion, ICICI Securities’ upgrade of Just Dial to ‘Buy’ is a significant development for investors. The brokerage’s target price of Rs 968 implies a potential upside of 15% from the current market price. The upgrade is driven by the company’s attractive valuations and improving profitability, which is expected to continue in the coming quarters.
Investors should note that the upgrade is not without risks, and they should do their own research and analysis before making any investment decisions. They can use technical analysis tools and internal linking to stay ahead of the curve and make informed investment decisions.
