Stock Of The Day: Just Dial's 25% Gain In 2024 Under Threat As Q3 Performance Disappoints

Shares of Just Dial Ltd. tumbled nearly 10% on Monday after reporting a sequential decline in third-quarter net profit. The stock has seen a volatile 2025 so far with the counter falling despite receiving a 'buy' upgrade by Citi Research.

The internet technology company plunged over 10% in the last four sessions after seeing a 25% rally in the previous year. The stock rose about 10% in the first five sessions only to fall by the same value in the last four.

The decline in today's session took the stock below the 14-day simple moving average and the 21-day exponential moving average, indicating a bearish momentum.

The stock currently tests the key Rs 977 level, where the scrip has taken multiple supports earlier. A strong close below this level could send the stock towards the Rs 860 mark.

On the upside, the Rs 1,000 mark could be the immediate resistance. A breakout above that in the medium term could send the stock to Rs Rs 1,100, which is 2 standard deviations above the 14-day moving average.

Just Dial's stock fell as much as 9.08% during the day to Rs 942.05 apiece on the NSE, while the benchmark Nifty 50 fell as much as 1.1% on Modnay.

The shares has risen 7.45% during the last 12 months. The total traded volume so far in the day stood at 14 times its 30-day average. The relative strength index was at 36.

Five out of the eight analysts tracking the company have a 'buy' rating on the stock, two suggest a 'hold' and one has a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 23%.

Just Dial reported a 14% sequential decline in its third-quarter profit. The consolidated net profit of the company fell to Rs 131 crore in the December quarter compared to Rs 154 crore in the September period.

The company reported a 0.7% increase in revenue, reaching Rs 287 crore, compared to Rs 285 crore in the previous period.

Commenting on the results, Chief Growth Officer Shwetank Dixit said Just Dial's focus remains on driving top-line growth while maintaining operational efficiency. "By enhancing our offerings for users and providing businesses with easy-to-use, advanced tools, we are creating sustainable growth for all stakeholders," he said.

Citi upgrade the stock to 'buy' with a target price of Rs 1,270 per share an upside of 24% from the previous close.

Revenue growth decelerated but sustained improvement in user traffic, it said. "Well positioned to dial up paid campaigns growth and drive up average realisations," according to Citi. The brokerage raised its estimates by 1% and 3% and Ebitda by 6% and 11% in fiscal 2026 and 2027