Nomura said the company has now renewed focus on its core search business, but competition from Google or vertical players is an issue.
Just Dial shares rallied 5.5 percent intraday Friday as Nomura has maintained its buy rating on the stock with increased target price at Rs 635 from Rs 590 per share.
Just Dial remains the most cost-effective SME advertising platform in India, with scope for coverage expansion in tier 2/3 cities, the research house said while expecting an EPS to grow at CAGR of 19 percent over FY17-20 and revenue CAGR of 10 percent over FY17-19
Improved traffic growth trends, stable realisations and operational efficiencies are key positives, it feels.
Nomura said the company has now renewed focus on its core search business, but competition from Google or vertical players is an issue.
Meanwhile, local search engine Just Dial's second quarter standalone profit grew by 26.5 percent to Rs 37.5 crore and revenue from operations increased 7.9 percent to Rs 194.4 crore compared with year-ago.
At 11:18 hours IST, the stock price was quoting at Rs 546.45, up Rs 22.70, or 4.33 percent on the BSE.
