Just dial share: Today, on January 13, amidst the huge fall in the stock market, heavy selling was seen in the shares of Just Dial Limited. This stock closed at Rs 893.50, down 13.64 percent on BSE. The internet technology company recently released its third quarter FY25 results. With today’s fall, the market cap of the company has come down to Rs 7,598 crore. The stock’s 52-week high is Rs 1394.95 and 52-week low is Rs 769.85.
How was the performance of Just Dial in the third quarter?
Just Dial’s revenue grew 8.4 per cent year-on-year and 0.9 per cent quarter-on-quarter in the December quarter, which was below market expectations. Implied billings growth of 3.4% YoY was below expectations and is a matter of concern, especially after a weak YoY growth of 8% in Q2FY25. The fourth quarter is generally a strong quarter for billings.
The number of unique visitors increased by 15.3 percent compared to last year to 191 million, which is 3.4 percent less than the previous quarter. Collections grew by 5.6% in the first nine months of this financial year, which is lower than the management’s expectation of 10-15%. Weak collections indicate monetization challenges.
The company’s net profit during the quarter increased 42.7% year-on-year to Rs 131.3 crore. In the same quarter of the last financial year, Just Dial had earned a net profit of Rs 92 crore. EBITDA increased 44% to Rs 86.6 crore in the third quarter. Which was Rs 60.2 crore in the third quarter of the last financial year. EBITDA margin stood at 30.1% in the quarter, compared to 22.7% in the same period of FY2024.
Brokerage Opinion on Just Dial
Brokerage firm Kotak Institutional Equities has maintained ‘Buy’ rating on the stock, but reduced its target price to ₹1330 from ₹1475 earlier. Although margins have normalized, concerns over long-term growth remain and Kotak expects to see some improvement in billings in Q4FY25.
Ambit, another brokerage house, said lack of investment in salesforce and marketing has started impacting collection growth. Ambit has issued a ‘Sell’ rating to Just Dial with a target price of ₹1037 per share.
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