Just Dial share price can rise up to 39%, Nuvama says despite target cut after Q2 results

Shares of Just Dial Ltd. are in focus on Tuesday, October 14, as brokerages cut their price targets by up to 6% after the company reported its September quarter earnings.

While brokerages Citi and Nuvama both have maintained their "buy" recommendations on the stock, they have both marginally cut their respective price targets.

Citi 

Citi has a "buy" rating on Just Dial and has cut its price target by 3.6% from ₹1,100 to ₹1,060. The revised price target implies a potential upside of 23% from Monday's closing.

Just Dial needs to invest for growth —  sales fleet, product, traffic acquisition —and its EBITDA growth beyond the topline will be driven by operating leverage, Citi said.

Just Dial's current price values the stock at six times ex-cash price-to-estimated earnings for March 2027, on a Compounded Annual Growth Rate (CAGR) of 6% for its EBIT.

Nuvama

Nuvama also maintained its "buy" rating on the stock but marginally cut its price target to ₹1,200 from ₹1,280 earlier. Despite the revision in price target, the upside potential from Monday's close is still 39%.

The brokerage has cut its Earnings Per Share (EPS) estimates for financial year 2026 and 2027 by 5.8% and 3.9% respectively, and is also cutting down on growth and profitability expectations in the near-term due to subdued collections growth.

Just Dial's net profit during the September quarter fell 22.5% from last year due to the increase in tax rate. Revenue growth of 1.75% sequentially remained in single digits for the fifth quarter in a row. Margins though, remained steady at 28.7%.

Of the nine analysts that have coverage on the stock, seven have a "buy" rating and one has a "sell" rating.

Just Dial shares ended the previous session 3.5% lower at ₹861.5 apiece. The stock has declined 14.5% this year, so far.

Also Read: HCLTech shares could see further upside, analysts reassured after Q2 results