Just Dial share price: Just Dial shares tumbled over 6 per cent on Wednesday after the company reported a nearly 10 per cent Y-o-Y decline in consolidated net profit for the July-September quarter (Q2FY27), along with a contraction in margins.
The stock snapped its two-day winning streak to open nearly 3 per cent lower at ₹708.05 on the NSE before extending losses to hit an intraday low of ₹688.06.
Reliance Retail Ventures is the retail arm of billionaire Mukesh Ambani-led Reliance Industries Ltd.
Just Dial Q2FY27 results
Its revenue from operations, however, surged 13.11 per cent in Q2 at ₹342.82 crore, compared to ₹303.07 crore in the corresponding quarter a year ago. The company said that the topline growth was driven by an increase of 7.5 per cent Y-o-Y in revenue per paid campaign and 5.2 per cent in paid campaigns.
Operating Ebitda in the reporting quarter stood at ₹90.7 crore, up 4.1 per cent Y-o-Y from ₹87.1 crore in the corresponding period of the previous fiscal year. Ebitda margin contracted 228bps Y-o-Y to 26.4 per cent in the September quarter.
Just Dial share price target
ICICI Securities said that Just Dial’s strategic reinvestment impacted the margins in the second quarter. The brokerage sees the investments in AI and B2B offerings as supportive of the platform’s long-term growth potential as it maintained ‘Buy’ rating and raised the target price to ₹850 from ₹800.
“We think sustained growth and return on investment will be required for the stock to rerate meaningfully,” the brokerage said.
The brokerage added that no clarity emerging on cash distribution in the near term, and slowing growth in paid campaigns, listings etc are the downside risks.
Just Dial stock: Technical view
Sudeep Shah, head – technical and derivatives research at SBI Securities, said that Just Dial witnessed a correction after hitting a high of ₹802 on October 19. The stock once again failed to decisively cross its 200-week EMA, having faced resistance around the same zone in mid-July. Since then, the stock has largely remained within the 20-day and 200-week EMA range, indicating a lack of clear directional momentum.
On the upside, the ₹790–800 zone is likely to act as a key resistance. A decisive breakout above this range could pave the way for a fresh upmove. On the downside, the ₹640–630 zone is likely to provide support, and a decisive breach below this range could trigger fresh selling pressure, the analyst said. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.
