Just Dial shares rally on broker upgrades and strong cash reserves
Shares of the Indian local search platform have surged following upgraded revenue forecasts and investor speculation over potential cash returns to shareholders by its majority owner.
Just Dial shares have surged 36 percent over two days, driven by renewed brokerage optimism and a balance sheet heavy with cash. The Indian local search platform reported a 4.1 percent year-on-year increase in net profit to Rs 166.2 crore for the recent quarter.
Revenue climbed 9.9 percent annually to Rs 327.5 crore, while earnings before interest, taxes, depreciation and amortization reached Rs 87.4 crore. The company maintained a healthy EBITDA margin of 26.7 percent and recorded 192.9 million quarterly unique visitors.
A major focal point for investors is the company’s substantial liquidity. As of June 30, 2026, Just Dial held cash and investments totaling Rs 6,022.1 crore. Reliance Retail Ventures, a subsidiary of Reliance Industries, controls a 63.84 percent stake in the business.
Brokerages are increasingly factoring this cash pile into their valuations. Kotak Institutional Equities reaffirmed a Buy rating with a target price of Rs 1,110, implying a 62 percent upside. The firm values the stock at 11 times its June 2028 core price-to-earnings ratio, plus the value of its cash.
Kotak noted that Just Dial is currently prioritizing its core business with minimal emphasis on new initiatives. The brokerage highlighted that any move by the company to distribute cash to shareholders could serve as a primary catalyst for the stock.
Citi also raised its revenue estimates for the company by 4 percent for fiscal year 2027 and 6 percent for fiscal year 2028. The bank cited faster-than-expected growth driven by recent salesforce additions and solid first-quarter performance, setting a target price of Rs 930.
However, not all analysts are uniformly aggressive. ICICI Securities maintained its Buy rating but slashed its target price to Rs 825 from Rs 968. The firm values the stock at three times its one-year forward enterprise value to EBITDA.
ICICI pointed to a lack of clarity regarding near-term cash distribution as a key downside risk, alongside potential slowdowns in paid campaign growth. Conversely, clearer visibility on shareholder returns or stronger paid campaign conversions could trigger upward revisions.
These financial updates coincide with a leadership transition at the company. Chief Executive Officer VSS Mani is stepping down, and former Flipkart executive Dinkar Ayilavarapu has been named as his successor.
Despite the recent two-day spike, Just Dial shares remain down 19 percent over the past year, though they are up 5 percent on a year-to-date basis. Investors will now watch closely to see if the new leadership and majority owner capitalize on the company’s valuation metrics.
