Just Dial Shares Get ‘Buy’ Upgrade From ICICI Securities Post Q3 Results
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).
In Q3 FY26, Just Dial reported 6.4% YoY revenue growth, with Ebitda margin expanding by 102 basis points YoY, driven by lower employee costs following headcount reductions in Q2.
Key Takeaways From Just Dial’s Q3 Results
The company’s revenue growth was driven by an increase in paid listings, which rose by 5.4% YoY. The average revenue per user (ARPU) also increased by 4.5% YoY, driven by a higher number of premium listings.
The Ebitda margin expansion was driven by a reduction in employee costs, which fell by 12.1% YoY. This was due to the headcount reductions implemented by the company in Q2.
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 over 20% from current levels.
According to ICICI Securities, Just Dial’s valuations are attractive after the recent price correction. The stock is trading at a price-to-earnings (P/E) ratio of 22.5x, which is lower than its historical average.
The brokerage also expects Just Dial to benefit from the growing demand for digital marketing services in India. The company’s strong brand and large customer base are expected to drive growth in the coming quarters.
Investment Strategy: Should You Buy Just Dial Shares?
Investors who are looking to buy Just Dial shares should consider the company’s strong fundamentals and attractive valuations. The stock’s P/E ratio is lower than its historical average, and the company’s revenue growth and Ebitda margin expansion are expected to drive earnings growth in the coming quarters.
However, investors should also be aware of the risks associated with the stock. The company’s revenue growth is dependent on the growth of the Indian economy, and any slowdown in the economy could impact the company’s revenue.
Investors can also consider other stock market news and trends to make informed investment decisions. Additionally, they can look at Nifty today and Sensex news to stay updated on the latest market developments.
Conclusion
In conclusion, ICICI Securities’ upgrade of Just Dial to ‘Buy’ is a positive development for investors. The company’s strong fundamentals and attractive valuations make it an attractive investment opportunity. However, investors should also be aware of the risks associated with the stock and consider other market trends and news to make informed investment decisions.
Investors can also consider Indian stock market trends and news to stay ahead of the curve. By staying informed and up-to-date, investors can make informed investment decisions and achieve their financial goals.
