Barclays downgrades Just Dial, slashes price target 39%

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Broking firm Barclays has downgraded its rating on search firm Just Dial to ‘equal weight’ from ‘overweight’, citing delay in the launch of the company’s Search Plus services as the main reason. It has also slashed the compay's price target 39 percent to Rs 1210 from Rs 1975 earlier.

Barclays likes the ‘moat’ Just Dial has created for its business by listing around 15 million SMEs on its search platform which is highest among its peers and covers around 35 percent of India’s total SME businesses.

“However, the delay in the formal launch of its Search Plus service, which we see as essential to protect the core business, is not comforting,” says the note by Barclays analyst Saurabh Mishra.

Also, the emergence of various vertical-specific competitors in restaurants, travel, movie ticketing, will impact the company’s core offerings, feels the broking firm.

“We believe that Just Dial’s core business should provide sufficient earnings growth in the near term. However, success with Search Plus is essential for Just Dial to be viewed more positively,” the note says.