Just Dial share price soars 9% to 2-month high after Q4 numbers. Should you buy, sell, or hold?

Shares of Just Dial, India’s leading local search engine company, popped up 9% in Monday's early morning trade, April 21, to reach a 2-month high of ₹1000 apiece after investors reacted positively to the company's fourth-quarter performance.

The company on Saturday reported a net profit of ₹158 crore, a 36.2% YoY jump as compared to a net profit of ₹116 crore, while the revenue from operations improved by 07% YoY to ₹289 crore.

Other income stood at ₹108.7 crore, up 19.0% YoY and 40.4% QoQ, due to the decline in bond yields during the quarter and higher treasury. During the reporting quarter, total traffic (unique visitors) stood at 191.3 million, up 11.8% YoY and 0.1% QoQ. 86.9% of traffic originated on mobile platforms, 10.5% on desktop/PC, and 2.6% on our voice platform.

Content enrichment, initiatives towards better user experience, and moderate advertising are resulting in traffic growth, which augurs well for the business. It has reported a 61 percent year-on-year increase in net profit in FY25 to ₹584.2 crore. Revenue for FY25 was ₹1,141.9 crore, reflecting a 9.5 percent growth over FY24.

In Q4 specifically, growth was driven by well-strategized merchant acquisition initiatives that enabled deeper penetration in both urban and semi-urban markets, a company statement said. Quarterly unique visitors on the platform reached 191.3 million in Q4, an 11.8 percent year-on-year growth, while total business listings stood at 48.8 million at the end of FY25.

Should you buy the stock after Q4 results?

Domestic brokerage firm Kotak Institutional Equities retains its revenue growth and EBITDA margin estimates. The brokerage, however, trimmed EPS estimates by 3-5% as it modeled lower other income.

"For now, the company is focusing only on the core business, and there is minimal focus on new initiatives. We trim our target ex-cash P/E multiple to 17X to arrive at a revised FV of Rs1,275 (Rs1,330 earlier).

Just Dial remains a value pick and is available at attractive valuations of 7X ex-cash FY2027 P/E. Any intent by the company to return cash to shareholders can be a stock price trigger," said the brokerage. It retained its 'buy' call on the stock.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.