Just Dial Ltd. share price target

Just Dial reported 6.4% YoY revenue growth in Q3FY26, with EBITDA margin expanding 102bps YoY driven by lower employee costs following Q2FY26’s headcount reductions.

Just Dial’s Q1FY26 revenue was up 6.2% YoY, while EBITDA margin was flattish YoY (-74bps QoQ) – despite flat headcount – due to higher other expenses.

Q4FY25 revenue growth slowed to 7% YoY. EBITDA margin declined sequentially for the first time after seven quarters. Given the sustained pressure on revenue growth and all-time high EBITDA margin, the earnings growth outlook remains weak for FY26.

Revenue in Q1FY24 was Rs2,470mn, up 6.2% QoQ / 33.1% YoY (I-Sec: Rs 2,537mn). Employee expenses at Rs1,826mn were up 6% QoQ / 22.6% YoY. Other expenses at Rs277mn were up 2.5% QoQ, but down 1.8% YoY. EBITDA margin expanded to 14.9% (+60 bps QoQ).

In addition to a strong performance in Q4FY23, management has given some clarity on the company’s new businesses, which we think should shore up investor confidence. The JD Xperts business pilot phase seems to be coming to a conclusion with material improvement in key operating metrics and the business is gearing up for its commercial launch over the next 3-4 months.

Just Dial’s Q3FY23 revenue grew 7.8% QoQ and 39.3% YoY. EBITDA grew 5.2x YoY as operating margin improved by ~900bps YoY (400bps QoQ). It is now 12.3% vs ISec estimate of 9.4%.

We reinitiate coverage on Just Dial with a BUY rating and target price of Rs750 (~32% upside).

Just Dial (JUST) reported revenue growth of mere 1.9% QoQ-far below estimates, dragged by impact on SMEs from covid waves

What should investors do? JDL's share price has grown by ~1.8x over the past five years (from ~| 450 in October 2016 to ~| 820 levels in October 2021). We continue to remain positive and retain our BUY rating on the stock...

Disappointing Q2 with revenue contracting 6.9% YoY and miss on margins

RRVL's Rs21.6bn capital infusion to acquire 25% of JUST DIAL (JUST) to drive revenue growth was the key positive development

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