Edelweiss is bullish on Just Dial has recommended hold rating on the stock with a target price of Rs 590 in its research report dated January 23, 2018.
Edelweiss' research report on Just Dial
Just Dial (JD) reported strong Q3FY18 with 9.2% YoY revenue growth, backed by better realisation and 330bps QoQ expansion in EBITDA margin to 23.7% (Street’s estimate 22.4%) on cost rationalisation. Consistent advertisements are leading to increased user engagement – traffic up 33.6% YoY and app downloads up 61.0% YoY – which will hold the revenue growth momentum. We believe that JD is executing well on user engagement, which will drive revenue growth and cost rationalisation, leading to strong EBITDA growth.
OutlookWe upgrade to ‘HOLD’ with a revised TP of INR590 (20xFY20E EPS) on earnings upgrade and roll forward to FY20E.
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