Hold Just Dial; target of Rs 968: ICICI Direct

ICICI Direct recommended hold rating on Just Dial with a target price of Rs 968 in its research report dated July 16, 2025.

Broker Research

July 16, 2025 / 11:51 IST

hold

live

bselive
nselive

Volume

Todays L/H

ICICI Direct's research report on Just Dial

Just Dial’s Q1FY26 revenue was up 6.2% YoY, while EBITDA margin was flattish YoY (-74bps QoQ) – despite flat headcount – due to higher other expenses. Active paid campaigns continued to plateau (+4.3% YoY), moderating from 7.9% in Q1FY25. On the positive side, web traffic was up 6.6% YoY and app downloads per day was up 9.7% YoY. We think this was due to increased advertisement spends. While this is a step in the right direction, we shall look for tangible improvements in paid campaigns over the next 2–3 quarters. Cash balance rose to INR 54.3bn. Collections, in Q1FY26, were INR 2.7bn (flattish YoY). However, the key question on the stock – cash distribution to shareholders – remains unanswered. Without visibility on demand recovery or shareholder payouts, re-rating triggers remain elusive.

Outlook

We maintain HOLD with a target price of INR 968 based on 8x one-year forward EV/EBITDA multiple (FY27E).

For all recommendations report, click here