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 stock’s potential risk and return profile.
Quality Assessment
As of 30 December 2025, Just Dial Ltd. holds an average quality grade. This reflects moderate operational efficiency and business fundamentals. While the company has maintained steady net sales growth at an annual rate of 8.03% over the past five years, this pace is considered modest within the e-retail and e-commerce sector, which often demands higher growth rates to justify premium valuations. Operating profit growth at 11.25% annually over the same period further underscores a stable but unspectacular earnings trajectory.
Valuation Perspective
The valuation grade for Just Dial Ltd. is fair, indicating that the stock is neither significantly undervalued nor excessively expensive relative to its earnings and growth prospects. Investors should note that fair valuation suggests limited upside potential from a price perspective, especially when coupled with the company’s current growth and profitability metrics. This valuation stance advises prudence, as the stock price may not adequately compensate for the risks involved.
Financial Trend Analysis
The financial trend for Just Dial Ltd. is flat, signalling a lack of meaningful improvement or deterioration in recent quarters. The latest quarterly results ending September 2025 reveal a decline in profit after tax (PAT) by 22.5%, with PAT reported at ₹119.44 crores. Additionally, the earnings per share (EPS) have dropped to a low of ₹14.05, reflecting subdued profitability. Non-operating income constitutes nearly 49.86% of profit before tax, indicating that core business operations are under pressure and that earnings are being supplemented by non-recurring or ancillary income sources.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Technical Outlook
The technical grade for Just Dial Ltd. is bearish, reflecting negative momentum in the stock price and weak market sentiment. The stock has experienced consistent declines across multiple time frames: a 1-day drop of 1.16%, a 1-week decline of 2.98%, and a 1-month fall of 2.87%. More notably, the stock has lost 13.48% over three months, 22.91% over six months, and 27.46% over the past year. This sustained downward trend suggests that technical indicators are signalling caution for investors, with limited signs of a near-term reversal.
Comparative Performance and Market Context
Just Dial Ltd.’s performance has lagged behind broader market benchmarks such as the BSE500 index over the last one year, three years, and three months. This underperformance highlights challenges in maintaining competitive positioning within the e-retail and e-commerce sector. The company’s small-cap status further adds to the volatility and risk profile, as smaller companies often face greater operational and market uncertainties.
Implications for Investors
For investors, the 'Sell' rating serves as a signal to reassess holdings in Just Dial Ltd. The combination of average quality, fair valuation, flat financial trends, and bearish technicals suggests that the stock currently offers limited upside potential and carries elevated risk. Investors seeking growth or stability may find more attractive opportunities elsewhere in the sector or broader market. However, those with a higher risk tolerance might monitor the stock for potential turnaround signals or valuation improvements in the future.
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Summary
In summary, Just Dial Ltd. is currently rated 'Sell' by MarketsMOJO, reflecting a cautious outlook based on its current fundamentals and market performance as of 30 December 2025. The company’s average quality, fair valuation, flat financial trend, and bearish technical indicators collectively suggest that the stock is facing headwinds. Investors should carefully consider these factors when making portfolio decisions and remain vigilant for any changes in the company’s operational or market environment that could alter its outlook.
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