JustDial rises 2% on Credit Suisse upgrade but target cut

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Shares of JustDial rose over 2 percent intraday on Tuesday. Credit Suisse has upgraded it to outperform but slashed target to Rs 1,400 from Rs 1,625. The brokerage estimates a 28 percent CAGR over FY15-18 and states that earnings and target price cuts are due to ad spend and absence of benefits from 'Search Plus'.

“Since our initiation in Sep-14, we have not been constructive on the stock due to uncertainty around 'Search Plus' (e-commerce and O2O initiatives), and high valuations relative to our growth expectations. With a significant fall in the stock, we believe the core business, which remains strong, more than justifies its valuation,” it says in a report.

Following a strong run post its IPO in June 2013, the stock has corrected sharply and is 40 percent below its peak.

In a separate development, private equity Tiger Global has offloaded 2.1 percent stake in the company yesterday at Rs 1088 per share. Tiger Global was a pre-IPO investor and held 11.28 percent stake as on March 31.

As per data available on NSE, Tiger Global Five Indian Holdings sold 3,93,626 shares of Just Dial at Rs 1,088.13 on May 11. Tiger Global Four JD Holdings sold 4,53,393 shares at Rs 1,088.03 on the BSE and 634,874 shares at Rs 1,088.13 on the NSE.

Goldman Sachs Singapore PTE bought 5,15,378 shares at Rs 1,087.75 on the BSE and  460,229 shares at Rs 1,087.60 on the NSE.

Meanwhile, Credit Suisse says that high cash burn and selling pressure from pre-IPO investors are key risks poised for the stock.

At 11:19 hrs Just Dial was at Rs 1,096.55, up Rs 10.20, or 0.94 percent on the BSE.

Posted by Nasrin Sultana