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. The rating was assigned following a significant drop in the company’s Mojo Score from 62 to 34 points on 02 January 2025, reflecting a marked deterioration in the stock’s overall appeal.
Here’s How Just Dial Ltd. Looks Today
As of 01 February 2026, Just Dial Ltd. continues to face challenges across multiple fronts. The company’s Mojo Score remains at a low 34.0, firmly placing it in the 'Sell' category. This score encapsulates a blend of fundamental and technical factors that collectively weigh against the stock’s attractiveness for investors seeking growth or stability.
Quality Assessment
The quality grade for Just Dial Ltd. is currently assessed as 'average'. Over the past five years, the company has delivered modest growth, with net sales increasing at an annual rate of 10.24% and operating profit growing at 15.68%. While these figures indicate some expansion, they fall short of the robust growth rates typically favoured by investors in the e-retail and e-commerce sector, which is characterised by rapid innovation and scaling potential. Furthermore, the company’s earnings per share (EPS) for the latest quarter stood at Rs 13.87, marking the lowest quarterly EPS in recent periods, signalling pressure on profitability.
Valuation Perspective
Just Dial Ltd.’s valuation grade is considered 'fair'. This suggests that while the stock is not excessively overvalued, it does not offer compelling value relative to its peers or historical benchmarks. Investors should note that the company’s market capitalisation remains in the smallcap category, which often entails higher volatility and risk. The current price movements, including a 1-day decline of 1.41% and a 1-month drop of 7.94%, reflect market scepticism about the stock’s near-term prospects.
Financial Trend Analysis
The financial grade is described as 'flat', indicating stagnation in key financial metrics. The latest quarterly results showed a significant portion of profit before tax (PBT) – 50.77% – derived from non-operating income, which raises concerns about the sustainability of earnings. Additionally, the company’s stock returns have been disappointing, with a 1-year return of -22.18% and a 6-month decline of 19.47%. These figures highlight underperformance relative to the broader BSE500 index over comparable periods, underscoring the stock’s struggles to generate shareholder value.
Technical Outlook
The technical grade for Just Dial Ltd. is 'bearish'. The stock’s price trend over the past three months has been negative, with a decline of 13.81%, and the year-to-date return is down by 7.89%. This bearish technical stance suggests that market sentiment remains weak, and the stock may face further downward pressure unless there is a significant change in fundamentals or investor perception.
Investment Implications
For investors, the 'Sell' rating on Just Dial Ltd. serves as a cautionary signal. The combination of average quality, fair valuation, flat financial trends, and bearish technicals implies that the stock currently lacks the momentum and fundamentals to justify a positive outlook. Investors should carefully weigh these factors against their risk tolerance and portfolio objectives before considering exposure to this stock.
Sector and Market Context
Operating within the e-retail and e-commerce sector, Just Dial Ltd. faces intense competition and rapid technological shifts. The sector generally rewards companies with strong growth trajectories and innovative business models. In this context, Just Dial’s modest growth and earnings challenges place it at a disadvantage compared to more dynamic peers. The stock’s underperformance relative to the BSE500 index over the last one year and three months further emphasises the need for caution.
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Summary
In summary, Just Dial Ltd.’s current 'Sell' rating by MarketsMOJO reflects a comprehensive assessment of its present-day fundamentals and market performance as of 01 February 2026. The company’s average quality, fair valuation, flat financial trends, and bearish technical indicators collectively suggest limited upside potential and heightened risk. Investors should consider these factors carefully and monitor any future developments that might alter the stock’s outlook.
Looking Ahead
While the current environment is challenging for Just Dial Ltd., investors should remain attentive to any strategic initiatives or market changes that could improve the company’s prospects. Improvements in operational efficiency, stronger revenue growth, or a more favourable technical setup could potentially shift the rating in the future. Until such signals emerge, the 'Sell' rating advises prudence.
Final Considerations
It is important to remember that the rating was assigned on 02 January 2025, but all financial data and returns discussed here are current as of 01 February 2026. This distinction ensures that investors have the most up-to-date information to inform their decisions. The MarketsMOJO rating system aims to provide a clear, data-driven perspective to help investors navigate the complexities of the stock market with confidence.
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