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Business News/ Markets / Stock Markets/  Just Dial share price surges 8.5%, hits 52-week high on strong Q3 results. Should you buy, hold or sell?
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Just Dial share price surges 8.5%, hits 52-week high on strong Q3 results. Should you buy, hold or sell?

Just Dial stock news: Just Dial stock price surged 8.5% to touch a new 52-week high on Monday after reporting accelerated recovery in Q3FY24 with sequential margin expansion for the seventh consecutive quarter.

 Just Dial share price today at ₹906.70 apiece on BSE. Just Dial stock price touched an intraday high of ₹945.80 and a low of ₹888.95 apiece.Premium
Just Dial share price today at 906.70 apiece on BSE. Just Dial stock price touched an intraday high of 945.80 and a low of 888.95 apiece.

Just Dial stock news: Just Dial share price today surged 8.5% to touch new 52-week high on Monday's session after the company's accelerated recovery towards pre-Covid levels in Q3FY24. According to brokerage house JM Financial, Just Dial reported sequential margin expansion for the seventh consecutive quarter, with a cumulative improvement of 26.5 percentage points. Just Dial share price today at 906.70 apiece on BSE. Just Dial stock price touched an intraday high of 945.80 and a low of 888.95 apiece.

According to Ruchit Jain, lead research analyst at 5paisa, Just Dial stock has recently seen an upmove but is trading around its hurdle, which is in the range of 950–950. It will be important to see the follow-up move. Only a breakout above this zone will lead to sustainable momentum in the stock.

Also Read: TCS vs Infosys vs Wipro vs HCL Tech: Which stock to buy after Q3 results 2024?

Just Dial's EBITDA grew to 60.4 crore (+122% YoY / +23.8% QoQ) in 3Q, according to the brokerage. This beat JMFe by 12.3% due to decent revenue growth and strong cost control over personnel and G&A expenses.

Consequently, the EBITDA margin increased 10.5 percentage points YoY (+4.1 percentage points QoQ) to 22.8%, surpassing JMFe by 276 basis points. Operating profit and treasury income exceeded expectations, resulting in a PAT of 92 crore, 16.5% more than JMFe.

Also Read: Stocks to buy this week: RIL, SBI, Nazara Tech, YES Bank, HCL Tech, IREDA among 12 technical picks; do you own any?

“Going ahead, while we expect company to refocus on growth, we see margin expanding to 25.3% by FY26, driven by improving sales productivity and scale-back of investments towards new initiatives," the brokerage said in its report.

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The consolidated revenue grew 19.7% YoY (+1.7% QoQ) to 265 crore in 3QFY24, growth was aided by both paid campaign growth (8.6% YoY) as well as increase in realisation (8.9% YoY).

Also Read: Wipro share price jumps 13% to 52-week high post Q3 results; Nifty IT up 2.5%

"We expect the management to reiterate its focus on monetisation of B2B listings due to better realisation as well as relatively lower threat of disruption from verticals. Accordingly, we postulate the revenue share of B2B campaigns to increase significantly over the next 2-3 years, which would be the key driver of topline growth," said JM Financial in its report.

Over FY24–26, the brokerage has increased its EBITDA projections by 7–11%. It has kept its "buy" recommendation on the stock and raised the target price from 950 to 1,010, a 6.3% increase.

Also Read: Nifty 50 takes just 26 days to jump from 21k to 22k; Tata Consumer, Bajaj Auto, Wipro jump up to 21% in this period

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

 

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Published: 15 Jan 2024, 12:44 PM IST
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