Price Movement and Market Context
On 20 Feb 2026, Just Dial’s shares touched an intraday low of Rs.600.1, representing a 3.33% drop from the previous close. This decline outpaced the sector’s underperformance of 2.33% on the same day. The stock’s current price is substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market displayed resilience. The Sensex, after opening 225.65 points lower, rebounded sharply by 605.11 points to close at 82,877.60, up 0.46%. The index remains within 3.96% of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. This divergence highlights the stock-specific pressures weighing on Just Dial.
Long-Term Performance and Valuation Metrics
Over the past year, Just Dial’s stock has declined by 32.44%, a stark contrast to the Sensex’s 9.43% gain during the same period. The stock’s 52-week high was Rs.1,049.85, underscoring the magnitude of the recent correction. This underperformance extends beyond the last year, with the company lagging the BSE500 index over one, three years, and the last three months.
Financially, the company’s net sales have grown at a modest compound annual growth rate (CAGR) of 10.24% over the last five years, while operating profit has expanded at 15.68% annually. These growth rates are considered subdued relative to sector peers, contributing to the cautious market stance.
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Profitability and Earnings Analysis
The company’s quarterly earnings reveal some areas of concern. Non-operating income constitutes 50.77% of profit before tax (PBT), indicating a significant portion of profits is derived from sources outside core business activities. The earnings per share (EPS) for the quarter stood at Rs.13.87, the lowest recorded in recent periods, reflecting pressure on profitability.
Return on equity (ROE) is reported at 9%, which suggests a fair but not robust return on shareholder capital. The price-to-book (P/B) ratio is 1.3, indicating the stock is trading at a reasonable valuation relative to its book value, albeit at a discount compared to historical averages of its peers.
Debt and Capital Structure
Just Dial maintains a conservative capital structure with an average debt-to-equity ratio of zero, signalling no reliance on debt financing. This low leverage reduces financial risk but also limits potential growth leverage through borrowing.
Recent Rating Changes and Market Sentiment
Reflecting the stock’s recent performance and outlook, the Mojo Grade was downgraded from Hold to Sell on 2 Jan 2025, with a current Mojo Score of 34.0. The market capitalisation grade stands at 3, indicating a mid-tier valuation relative to market size. The downgrade aligns with the stock’s underperformance and subdued growth metrics.
Comparative Performance and Sector Positioning
Within the E-Retail and E-Commerce sector, Just Dial’s performance has been below par. The stock’s negative returns over one year and longer periods contrast with the sector’s overall growth trends. The PEG ratio of 2.7 further suggests that the stock’s price is not fully justified by its earnings growth, which has increased by 5.4% over the past year despite the price decline.
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Shareholding and Corporate Governance
The majority shareholding remains with the promoters, maintaining a stable ownership structure. This concentrated ownership can provide strategic continuity but also places significant influence in the hands of a few stakeholders.
Summary of Key Metrics
To summarise, Just Dial Ltd. is currently trading at Rs.600.1, its lowest level in 52 weeks, following a sustained decline of over 13% in the last nine trading sessions. The stock’s valuation metrics, including a P/B of 1.3 and ROE of 9%, indicate fair but modest financial health. Earnings growth remains positive but modest at 5.4% annually, while the PEG ratio of 2.7 suggests the price decline may not be fully aligned with earnings trends.
Despite the broader market’s positive momentum, Just Dial’s share price continues to reflect challenges in growth and profitability relative to sector peers and market benchmarks.
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