The company is India’s market leader in the local search engine space. The company offers a unique local search service via phone, web, WAP, and SMS.
Just Dial shares climbed 7 percent to a 52-week high of Rs 812 per share on Wednesday after analyst reiterated buy recommendation and company’s shares closed at Rs 777.55, up 2.65 percent from previous closing price.
According to the company’s financials,Operating revenue climbed by 40 percent to Rs 232 crore in Q4FY23 compared to the same quarter the previous year, Likewise, net profit increased by 277 percent to Rs 83 crore.
In FY 22-23, the company’s operating revenue climbed by 30 percent year on year to 844 crore. Net Profit grew by 131 percent to Rs 162 crore over the same time.
Having a positive outlook for the company, UBS Securities gave a revised buy tag to the company with a target price of Rs 1,050 from Rs 900 indicating an upside of 35 percent as compared to the current price level.
The rationale behind providing such a recommendation is Brokerage expects to increase its FY 24/25 EPS projections by 24%/19%, due to rising momentum in the company’s core business, the potential for margin expansion due to improved productivity, and deferred revenue in the March quarter was up around 18% compared to pre-COVID levels, indicating excellent growth potential.
In FY 22-23, the net profit margin climbed to 19.26 percent while the operational profit margin increased to 23.14 percent.Profitability ratios grew as well, with Return on Equity at 4.43 percent and Return on Capital Employed at 5.13 percent.
In July 2021, Reliance Retail acquired $469 million for a controlling share of 66.95% in Just Dial. As part of the acquisition, Reliance Retail owns 40.95% of the company.
Written by Omkar Chitnis
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