Just Dial share price jumped over 8% on Thursday amid heavy volumes, extending its rally for the third consecutive session. The Mukesh Ambani-led conglomerate Reliance Industries-owned Just Dial shares spiked as much as 8.32% to ₹911.90 apiece on the BSE.
Around 18 lakh Just Dial shares traded hands on stock exchanges on February 22, as against its one week average volume of 2 lakh equity shares. In the past three sessions, Just Dial shares have rallied more than 17%.
The spike in Just Dial shares comes after brokerage firm Nuvama Institutional Equities upgraded its ratings on the stock.
Ratings Upgrade
Nuvama Equities said it was upgrading Just Dial shares to ‘Buy’ from ‘Hold’ as the stock looked extremely attractive with the core business available at a compelling value on market cap adjusted for cash. The brokerage has an unchanged Just Dial share price target of ₹1,140 apiece, implying an upside potential of over 35% from Wednesday’s closing price.
The brokerage firm believes that Just Dial’s core business is available at an attractive valuation when adjusted for cash. Just Dial has accumulated ₹5,060 crore in cash and cash equivalent as of December 2024, contributing for about 72% to its total market captialisation.
If Just Dial begins to pay out dividends from FY26, it would be available at a very attractive dividend yield of ~7.3%, according to Nuvama.
Just Dial is an asset-light business generating an EBITDA margin of 30% with high cash conversion. Its market-cap has corrected 20% since its Q3FY25 results, but its core business valuation excluding cash has corrected by 47.6%.
Just Dial’s EBITDA margin improved by 130 bps QoQ in Q3FY25, and Nuvama expects it to remain largely stable despite the slowdown in revenue growth due to cost reduction measures taken by management. Additional cuts in investment might lead to further improvement in margins in the short term.
Meanwhile, Reliance Retail Ventures holds a majority 63.84% stake in Just Dial as on December 2024, and remains a key player in the company’s strategic direction.
Just Dial Stock Price Trend
Just Dial share price has exhibited weakness over the past year. The Reliance-owned stock has declined by 5% in the past month and over 11% year-to-date (YTD). Over the last six months, Just Dial shares have dropped nearly 30%.
However, on a longer-term horizon, Just Dial stock has gained over 42% in the past two years and surged 80% over the last five years.
At 3:00 PM, Just Dial shares were trading 6.11% higher at ₹893.30 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
