Just Dial stock news: Just Dial share price today rose 8.5% to touch a new 52-week high in Monday’s session following the company’s accelerated recovery to pre-Covid levels in Q3FY24. According to brokerage house JM Financial, Just Dial reported consecutive margin expansion for the seventh consecutive quarter, with a cumulative improvement of 26.5 percentage points. Just Dial share price today at ₹906.70 per one on BSE. Just Dial share price touched an intraday high of ₹945.80 and a low of ₹888.95 each.
According to Ruchit Jain, principal research analyst at 5paisa, Just Dial shares have recently seen an uptick but are trading around their hurdle, which is in the range of 950–950. It will be important to see the next move. Only a break above this zone will lead to sustainable momentum in the stock.
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The EBITDA of Just Dial grew to ₹60.4 crore (+122% YoY / +23.8% QoQ) in 3Q, according to the brokerage. This beat JMFe by 12.3% due to decent revenue growth and strong cost control from personnel and G&A expenses.
Consequently, the EBITDA margin increased 10.5 percentage points YoY (+4.1 percentage points QoQ) to 22.8%, surpassing JMFe by 276 basis points. Operating profit and fiscal income exceeded expectations, resulting in a PAT of ₹92 crore, 16.5% more than JMFe.
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“Furthermore, while we expect the company to refocus on growth, we see margin expanding to 25.3% by FY26, driven by an improvement in sales productivity and scaling of investments towards new initiatives,” the brokerage said in its report.
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The consolidated income grew 19.7% YoY (+1.7% QoQ) to ₹265 crore in 3QFY24, growth was helped by both paid campaign growth (8.6% YoY) as well as increase in realization (8.9% YoY).
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“We expect management to reiterate its focus on monetizing B2B listings due to better performance as well as a relatively lower threat of vertical disruption. Therefore, we expect the revenue share of B2B campaigns to increase significantly over the next 2- 3 years. which would be the key driver of top growth,” JM Financial said in its report.
During FY24–26, the brokerage increased its EBITDA projections by 7–11%. It maintained its “buy” recommendation on the stock and raised the target price from ₹950 to ₹1,010, a 6.3% increase.
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Disclaimer: The above views and recommendations are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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Published: 15 Jan 2024, 12:44 IST