Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for Just Dial Ltd. indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: quality, valuation, financial trend, and technicals. Each of these factors contributes to the overall assessment of the company’s investment potential in the e-retail and e-commerce sector.
Quality Assessment
As of 24 February 2026, Just Dial’s quality grade is assessed as average. The company has demonstrated modest growth over the past five years, with net sales increasing at an annualised rate of 10.24% and operating profit growing at 15.68%. While these figures indicate steady expansion, they fall short of the robust growth rates typically favoured by investors seeking high-quality stocks in the technology-driven e-commerce space. Additionally, the company’s quarterly earnings per share (EPS) have recently hit a low of ₹13.87, reflecting some pressure on profitability.
Valuation Perspective
Interestingly, Just Dial’s valuation grade is classified as very attractive. This suggests that, relative to its earnings and asset base, the stock is trading at a discount compared to its peers or historical averages. For value-oriented investors, this could present a potential opportunity if the company’s fundamentals improve. However, valuation alone does not guarantee positive returns, especially when other factors such as financial trends and technical indicators are less favourable.
Financial Trend Analysis
The financial trend for Just Dial is currently flat, indicating a lack of significant improvement or deterioration in key financial metrics. The company’s recent quarterly results showed a substantial contribution from non-operating income, which accounted for 50.77% of profit before tax (PBT). This reliance on non-core income streams may raise concerns about the sustainability of earnings. Furthermore, the stock has delivered negative returns across multiple time frames as of 24 February 2026: a 1-year return of -29.39%, a 6-month return of -29.56%, and a 3-month return of -21.65%. These figures highlight the challenges the company faces in generating shareholder value in the current market environment.
Technical Outlook
The technical grade for Just Dial is bearish, reflecting downward momentum in the stock price. Recent price movements show a decline of 2.02% on the latest trading day, with weekly and monthly losses of 7.48% and 8.90%, respectively. This negative trend suggests that market sentiment remains weak, and the stock may continue to face selling pressure in the near term. Technical analysis thus reinforces the cautious stance implied by the 'Sell' rating.
Performance Relative to Benchmarks
Just Dial’s underperformance is also evident when compared to broader market indices. The stock has lagged the BSE500 index over the last three years, one year, and three months, underscoring its struggles to keep pace with the wider market. This relative weakness further supports the current recommendation for investors to approach the stock with caution.
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Implications for Investors
For investors, the 'Sell' rating on Just Dial Ltd. serves as a signal to reassess their holdings in the stock. While the valuation appears attractive, the combination of average quality, flat financial trends, and bearish technicals suggests limited upside potential in the near term. The stock’s recent negative returns and underperformance relative to market benchmarks further reinforce the need for caution.
Investors who prioritise capital preservation and seek stocks with stronger growth prospects may find better opportunities elsewhere in the e-commerce sector or broader market. Conversely, value investors might monitor the company for signs of fundamental improvement before considering a position, given the current discount in valuation.
Summary
In summary, Just Dial Ltd. is currently rated 'Sell' by MarketsMOJO, a rating established on 02 Jan 2025 but supported by the company’s present-day fundamentals as of 24 February 2026. The stock’s average quality, very attractive valuation, flat financial trend, and bearish technical outlook collectively inform this recommendation. Investors should weigh these factors carefully when making decisions about exposure to this small-cap player in the e-retail and e-commerce sector.
Company Profile and Market Context
Just Dial Ltd. operates within the e-retail and e-commerce sector, classified as a small-cap company. The sector remains highly competitive and dynamic, with rapid technological advancements and evolving consumer preferences. In this environment, companies must demonstrate strong growth, profitability, and market positioning to attract investor interest. Just Dial’s current metrics suggest it faces challenges in these areas, which is reflected in its cautious rating.
Stock Price Movement and Market Sentiment
The stock’s recent price performance has been weak, with a year-to-date decline of 19.11% and a one-day drop of 2.02% as of 24 February 2026. This price action indicates prevailing negative sentiment among market participants, likely driven by concerns over the company’s earnings quality and growth prospects. Such sentiment often influences technical indicators, which currently point to a bearish trend.
Looking Ahead
Going forward, investors will be watching for any signs of operational turnaround or strategic initiatives that could improve Just Dial’s growth trajectory and profitability. Until such developments materialise, the 'Sell' rating remains a prudent reflection of the stock’s risk-reward profile. Monitoring quarterly earnings, revenue growth, and market conditions will be essential for reassessing the stock’s outlook in the coming months.
Conclusion
Just Dial Ltd.’s current 'Sell' rating by MarketsMOJO is grounded in a thorough analysis of its quality, valuation, financial trends, and technical signals as of 24 February 2026. While the valuation is appealing, the overall picture suggests limited near-term upside and ongoing challenges. Investors should consider these factors carefully and align their portfolio decisions accordingly.
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