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Just Dial share falls 8% post Q2 earnings

Rupa Burman Roy     November 2, 2020

Just Dial share price dropped over 8% in Monday's trade after the company posted its September quarterly results.

The company's consolidated Q2 net profit fell 38.5% YoY at Rs 47.34 crore for the September quarter as against Rs 76.94 crore in the same quarter a year-ago. Company's revenue fell 30.9% to Rs 167.53 crore as compared to Rs 242.57 crore.

Following the earnings update, Just Dial share opened with a loss of 6.35% today at Rs 611 and touched an intraday low of Rs 599.5, down 8.12% on BSE against the last closing price of Rs 652.45 on BSE. The stock also hit an intraday high of Rs 646.80.

Market capitalisation of the firm stood at Rs 3,737 crore as of today's session.

Just Dial stock price has fallen 11% in the last 2 sessions of trade. However, the stock has risen 53% in one week and 5% in one month. Just Dial stock trades higher than 20, 50, 100 and 200-day moving averages but lower than 5-day moving averages.

"Due to the COVID-19 pandemic, there has been an impact on the revenue which has been partially offset by major cost reduction, including a reduction in employee benefits, advertising and sales promotion expenses etc," the company said in its financial report.

"While prioritising safety and well being of employees, the company is extensively leveraging technology for its operations. While the company has a strong balance sheet and robust cash position, the company is re-evaluating all costs and focusing even more on automated processes," Just Dial added.

UBS in its note said, "We raise our DCF (WACC of 12.8% and terminal growth of 4%)-based price target to Rs800.00 due to our higher long-term growth expectations (FY25-30E EPS up by 4-6%). Our price target implies 15.5x FY23E PE and 10x FY23E EV/EBITDA. We expect JD Mart to become a competing second player with a 25% market share in the next three years and contribute 19-27% of revenues in FY23-25E."

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