The research house Morgan Stanley has maintained equal-weight call on the stock with target at Rs 605 per share.
Shares of Just Dial added 11 percent in the early trade on Tuesday as company reported better numbers for the quarter ended September 2018.
The company’s Q2 net profit rose 29 percent to Rs 48.38 crore versus Rs 37.46 crore in the same quarter last year.
Revenue increased to Rs 221.03 crore versus Rs 194.47 crore.
The operating EBITDA was at Rs 57.5 crore, up 45%, while adjusted operating EBITDA margin, excluding ESOP expenses, stood at 28.6%, up 650 bps, YoY.
Broking house Nomura has maintained buy rating on Just Dial with a target at Rs 765 per share.
It believes that headroom on margins given advertisement spends are at lower levels. The unique visitor growth was healthy at 25 percent, YoY.
The continuation of focus on execution could drive a re-rating, it added.
The research house Morgan Stanley has maintained equal-weight call on the stock with target at Rs 605 per share.
According to research house the revenue is marginally ahead of our and consensus estimates as revenue growth led by paid campaigns and increase in realisations.
The second quarter witnessed one of the strongest net additions to paid campaigns, while net income was higher due to other income and lower tax rates, it added.
At 09:20 hrs Just Dial was quoting at Rs 497.20, up Rs 41.35, or 9.07 percent on the BSE.
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