Buy Just Dial; target of Rs 968: ICICI Direct

ICICI Direct is bullish on Just Dial recommended buy rating on the stock with a target price of Rs 968 in its research report dated January 14, 2026.

Broker Research

January 14, 2026 / 11:10 IST

Buy

ICICI Direct's research report on Just Dial

Just Dial reported 6.4% YoY revenue growth in Q3FY26, with EBITDA margin expanding 102bps YoY driven by lower employee costs following Q2FY26’s headcount reductions. Paid campaign net additions rebounded to 1.6mn (up 22.6% YoY), likely reflecting the impact of ad spends in Q3. Web segment traffic fell 6.7% QoQ/3.5% YoY. Sustained traction in net additions in the next 2–3 quarters and its eventual translation into collections may be a key monitorable. Q3 collections were INR 3bn (up 8% YoY), suggesting improvement while cash balance grew to INR 57bn. However, the key question on the stock – cash distribution to shareholders – remains unanswered.

Outlook

Despite no visibility on cash redistribution to shareholders, we think the stock’s recent price correction provides a good opportunity to enter. Upgrade to BUY; TP unchanged at INR 968 (6x FY27E EV/EBITDA /implied 5x FY28E EV/EBITDA).

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