Just Dial . Downgraded to 'Hold' by MarketsMOJO, Strong Financials and Technicals Remain

Just Dial ., a midcap IT software company, has recently been downgraded to a 'Hold' by MarketsMOJO on October 9, 2024. This decision was based on various factors, including the company's low Debt to Equity ratio, positive financial results, and technical indicators.
One of the main reasons for the 'Hold' rating is the company's low Debt to Equity ratio, which is currently at 0 times. This indicates that the company has a strong financial position and is not heavily reliant on debt to fund its operations.

In terms of financial performance, Just Dial . has declared positive results for the last 6 consecutive quarters, with a growth in Net Profit of 69.33% in March 2024. The company's Operating Cash Flow is also at its highest at Rs 259.22 Cr, and its Return on Capital Employed (ROCE) is at 11.58%, both of which are positive indicators.

From a technical standpoint, the stock is currently in a Mildly Bullish range, with multiple factors such as MACD, Bollinger Band, KST, and OBV showing a bullish trend. Additionally, there has been an increase in participation by institutional investors, who collectively hold 15.82% of the company. This is seen as a positive sign, as institutional investors have better resources to analyze a company's fundamentals.

Just Dial . has also outperformed the market (BSE 500) with a return of 69.44% in the last year, compared to the market's return of 37.10%. However, the company's long-term growth has been poor, with Net Sales growing at an annual rate of 3.19% and Operating Profit at 1.55% over the last 5 years.

In terms of valuation, Just Dial . has a high Price to Book Value of 2.6, indicating a very expensive valuation. However, the stock is currently trading at a discount compared to its average historical valuations. The PEG ratio, which takes into account the company's growth, is also at a favorable level of 0.7.

Overall, while Just Dial . has shown strong financial performance and technical indicators, its long-term growth and valuation may be a cause for concern. Investors are advised to hold onto their positions and monitor the company's performance closely.