Why is Just Dial falling/rising?

Sep 03 2025 09:31 PM IST
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As of 03-Sep, Just Dial Ltd. is priced at 818.65, with a recent slight increase but a significant decline of -34.97% over the past year. Despite short-term gains, the company's long-term growth prospects appear weak, leading to investor caution.
As of 03-Sep, Just Dial Ltd. is currently priced at 818.65, reflecting a slight increase of 1.65 (0.2%). The stock has been gaining for the last three days, with a total return of 1.41% during this period, and it has outperformed its sector by 0.75%. However, over the past week and month, the stock has seen declines of 0.29% and 1.34%, respectively. Despite a low debt-to-equity ratio and a significant rise in delivery volume, the company has faced challenges with poor long-term growth, as evidenced by a modest annual growth rate in net sales and operating profit over the last five years. Additionally, the stock's performance has been underwhelming, with a return of -34.97% over the past year, despite a 43.3% increase in profits, indicating a disconnect between stock performance and profitability.

In the broader market context, Just Dial's recent performance has been slightly better than the benchmark, with a 1.41% gain over the last three days compared to a marginal decline in the Sensex. However, the stock has underperformed the benchmark over longer periods, including a -34.97% return in the last year versus a +3.11% return for the Sensex year-to-date. This underperformance, coupled with the company's flat results and high valuation metrics, suggests that while there may be short-term gains, the long-term outlook remains concerning, contributing to investor caution.
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