1. Just Dial shares fall nearly 30 per cent in last 5 trading sessions, should you buy?

Just Dial shares fall nearly 30 per cent in last 5 trading sessions, should you buy?

In the past one year, the share price of Just Dial slipped 61 per cent, whereas the BSE Sensex plunged 16 per cent during the same period.

By: | Updated: February 1, 2016 4:32 PM
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In the past one year, the share price of Just Dial slipped 61 per cent, whereas the BSE Sensex plunged 16 per cent during the same period.

Just Dial shares, that fell nearly 30 per cent in the past five trading sessions, hit their new 52-week low of Rs 544 on Monday. The share price of the local search engine provider settled 7.02 per cent down at Rs 565.90.

The company on January 28 reported 16.02 per cent year-on-year fall to Rs 26.99 crore in its net profit figures for the quarter ended December 2015. The company posted bottom line of Rs 32.14 crore in the same quarter last year. According to Motilal Oswal, Just Dial December quarter results remained below expectation. However, the brokerage house has ‘Buy’ rating on Just Dial shares with a target price of Rs 830.

Net sales of Just Dial grew by 10.95 per cent year-on-year to Rs 171.33 crore during October-December 2015.

Ankit Kedia, analyst, Centrum Broking in a research note said, “We have lowered our revenue estimates by 3.4 per cent and 7.3 per cent on slowing growth in the core search business of Just Dial, and cut operating profit by 6.7 per cent and 39 per cent for FY16E and FY17E on higher advertising and promotion (A&P) and employee costs. PAT is cut by 3 per cent and 35 per cent, respectively, on low revenues. We maintain our ‘Hold’ rating, with a revised target price of Rs 780. Key downside risks are execution risk in Search Plus, while upside risk could be sharper-than-expected recovery in core search business.”

In the past one year, the share price of Just Dial slipped 61 per cent, whereas the BSE Sensex plunged 16 per cent during the same period.

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