Just Dial Shares Gets 'Buy' Upgrade From ICICI Securities Post Q3 Results — Check Target Price

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ICICI Securities Report

ICICI Securities has upgraded Just Dial Ltd. to 'Buy', citing attractive valuations after the recent price correction. The brokerage kept its target price unchanged at Rs 968, valuing the stock at 6x FY27E EV/EBITDA (implied five times FY28E).

In Q3 FY26, Just Dial reported 6.4% YoY revenue growth, with Ebitda margin expanding by 102 basis points YoY, driven by lower employee costs following headcount reductions in Q2.

Paid campaign net additions rebounded to 16 lakh (up 22.6% YoY), likely reflecting increased ad spends during the quarter. Collections improved to Rs 300 crore (up 8% YoY), while cash reserves rose to Rs 5,700 crore.

Although web traffic declined 6.7% QoQ and 3.5% YoY, ICICI Securities believes sustained traction in paid campaign additions and their eventual conversion into collections will be key monitorables.

The brokerage notes that clarity on cash distribution to shareholders remains pending but sees the current valuation as a compelling entry point.

Downside risks: 

• No clarity emerging on cash distribution in near term;

• and slowing growth in paid campaigns, listings etc.

Upside risks:

• Improved visibility on potential cash distribution to shareholders; and

• stronger-than-expected growth in paid campaign conversions.

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