Just Dial shares zoom 12% after share allotment to employees

In the last one year, the stock has rallied 42 percent, outperforming benchmark Nifty 50 which has risen 22 percent during this period.

Shares of Just Dial zoomed over 12 percent on February 8, a day after the company allocated 9,375 equity shares with a face value of Rs 10 each to some of its employees.

This allocation follows the exercise by these employees of vested options granted to them under the relevant Employees Stock Option Schemes of the company.

Consequent to the allotment, the issued, subscribed and paid-up share capital of Just Dial has increased to Rs 85.5 crore, comprising 8.5 crore equity shares having a face value of Rs 10 each.

At 12:10pm, the Just Dial shares were at Rs 894.70 on the NSE, up 8 percent from the previous close. In the last one year, the stock has rallied 42 percent, outperforming the benchmark Nifty 50 which has risen 22 percent during this period.

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Just Dial provides local search-related services to users in India through platforms such as Desktop/ PC website, mobile site, mobile apps (Android, iOS, Windows), over the telephone and text. In February, it launched its B2B portal, Jd Mart, across various platforms.

Just Dial last month reported a 22 percent on-year rise in Q3 net profit at Rs 92 crore against a profit of Rs 75.3 in the year-ago period.

Revenue for the local search platform jumped 39.32 percent on-year to Rs 221.37 crore for the quarter ended December 2023, compared with Rs 158.89 crore in the same quarter last year.

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Following a better-than-expected Q3 earnings, international brokerage UBS raised its target price on the stock to Rs 1,125 from Rs 1,050 earlier.

The brokerage is looking forward to guidance on (1) growth outlook, (2) operating expenses related to employee cost and advertisement spends, and (3) overall margin trajectory for FY25.

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