Just Dial Shares Face Pressure After Q3 Miss; Citi Slashes Price Target
Overview
Just Dial Ltd. reported a 10.2% drop in net profit for the December quarter, despite revenue and EBITDA growth. The company is focusing on integrating agentic AI. Brokerage firm Citi maintained a 'buy' rating but significantly cut its price target to ₹1,000 and lowered growth estimates due to declining traffic.
Stocks Mentioned
Q3 Performance Decline Amid Growth
Shares of Just Dial Ltd. saw activity on Wednesday following the company's third-quarter earnings report. While net profit slipped 10.2% year-on-year to ₹117.9 crore, revenue edged up 6.4% to ₹305.6 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 9.6% to ₹95.2 crore, with margins expanding to 31.1% from 30.2% a year prior.
Agentic AI Integration Moves Forward
The company highlighted progress in integrating agentic AI. Chief Growth Officer Shwetank Dixit stated that this technology is automating workflows, analyzing user calls to identify business intent, and automatically creating qualified leads. Future plans include rolling out AI-driven voice and chat interfaces for data verification and customer support, alongside embedding AI within the search experience for more conversational discovery.
Analyst Downgrade and Outlook
Brokerage firm Citi reaffirmed its "buy" recommendation on Just Dial but reduced its price target to ₹1,000 per share. The firm noted that Just Dial requires investment for future growth, and sustained EBITDA expansion will likely stem from operating leverage. Citi also lowered its growth estimates and valuation multiples for the company from 12 times to 10 times, citing the ongoing decline in user traffic.
Stock Performance
Just Dial's stock closed the prior session 1.5% higher at ₹733. The shares have experienced a downturn, declining 18.7% over the past twelve months.
