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). This move is expected to boost investor sentiment and potentially drive up the stock’s price in the coming days.
Q3 FY26 Results: A Mixed Bag
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. While the revenue growth may seem modest, the improvement in Ebitda margin is a positive sign, indicating the company’s efforts to optimize costs and improve profitability.
However, the results were not without their challenges. The company faced intense competition in the online directory space, which put pressure on its revenue growth. Additionally, the company’s operating expenses increased, primarily due to higher marketing and advertising spends.
ICICI Securities’ Upgrade: What Does it Mean for Investors?
ICICI Securities’ upgrade of Just Dial shares to ‘Buy’ is a significant development, as it suggests that the brokerage firm sees value in the stock at current levels. The target price of Rs 968 implies a potential upside of over 20% from current levels, making it an attractive proposition for investors looking to buy into the stock.
However, it’s essential to note that the upgrade is based on the company’s attractive valuations after the recent price correction. The stock has been under pressure in recent months, and the upgrade may be seen as a contrarian call by the brokerage firm.
Indian Stock Market: Current Trends and Outlook
The Indian stock market has been volatile in recent months, with the Nifty and Sensex indices experiencing significant swings. The market has been driven by a combination of factors, including global market trends, domestic economic data, and corporate earnings.
Despite the challenges, the Indian stock market remains an attractive destination for investors, with a long-term growth story driven by the country’s demographic dividend, urbanization, and digitalization. Investors can consider investing in diversified equity mutual funds or exchange-traded funds to participate in the market’s growth while minimizing risk.
Just Dial Shares: Technical Analysis
From a technical perspective, Just Dial shares have been trading in a range-bound pattern, with the stock oscillating between Rs 700 and Rs 900. The recent upgrade by ICICI Securities may provide a catalyst for the stock to break out of this range and move higher.
Investors can consider using technical analysis tools such as moving averages, relative strength index (RSI), and Bollinger Bands to identify potential entry and exit points in the stock.
Conclusion
In conclusion, ICICI Securities’ upgrade of Just Dial shares to ‘Buy’ is a significant development that may attract investor attention. While the stock’s fundamentals are improving, it’s essential to consider the broader market trends and technical analysis before making an investment decision. Investors can consider consulting with a financial advisor or stock market experts to get personalized advice on investing in Just Dial shares or other stocks in the Indian market.
