Just Dial shares gain 3% as brokerages remain positive after Q1 earnings

Nomura also maintained a buy call on the stock with a target price at Rs 765 per share. It said the company is the most cost-effective SME advertising platform relative to peers

Just Dial shares gained more than 3 percent intraday on July 23 as brokerages maintained their positive stance on the stock after June quarter earnings.


The stock was quoting at Rs 735.30, up to Rs 9.25, or 1.27 percent on the BSE at 1036 hours IST.

Profit in Q1 shot up 48.3 percent year-on-year to Rs 57.3 crore led by other income, and revenue grew 13.6 percent to Rs 240.2 crore.

At the operating level, earnings before interest, tax, depreciation, and amortization increased 12 percent year-on-year to Rs 64.2 crore but margin contracted 45bps, which could be due to IND AS 116 impact.

Listing growth was 16.7 percent YoY though it slowed down from 20.7 percent growth in Q1FY19. Paid campaign growth picked up to 13.8 percent in Q1FY20 against 3.9 percent in Q1FY19.

While having an overweight call on the stock with a target price at Rs 680, Morgan Stanley said operating metrics pointed to sustained growth momentum and revenue was in-line with estimates led by gains in paid campaigns.

Realizations in Q1 were a tad lower by 0.2 percent but grew 0.5 percent QoQ while traffic growth was strong at 24.6 percent YoY.

Nomura also maintained a buy call on the stock with a target price at Rs 765 per share. It said the company is the most cost-effective SME advertising platform relative to peers. Company has wide scope to expand coverage in Tier-II/III cities, the brokerage said.

Disclaimer: The views and investment tips expressed by brokerages on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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