Small Cap Service Sector Stock Soars 10% Post Q 3 Result, Should You Buy?
Just Dial's shares soared 10% on Monday post the company announced its Q 3 results.
The company's quarterly revenue grew 7 .8 % QoQ and 39.3% YoY Just Dial.
Leading brokerage firm ICICI Securities has a buy on the stock of Just Dial with an estimated target price of Rs 750/ share.
According to the brokerage's given target price, if stock is purchased today at the current market price, it would likely give a return of up to 17%.
The stock of Just Dial is currently trading at Rs 644.30/ share on NSE, jumped 10% from its previous close of Rs 585.75/ share.
The stock last week has given 8 .36 % positive return, whereas, in the last 1 month it has given 8 .46 % positive return.
However, it fell 26 .83 % in the last 1 year.
It recorded its 52 week high on 21st January 2022 at Rs 957.55/ share and its 52 week low on 20 June 2022 at Rs 520/ shares, respectively.
It is a small- cap company with a market capitalisation of Rs 5,427.80/ share.
Strong margin beat, compelling valuation, Buy for a target price of Rs 750/ share
Just Dial's Q 3 FY 23 revenue grew 7 .8 % QoQ and 39.3% YoY.
EBITDA grew 5 .2 x YoY as operating margin improved by ~ 900bps YoY ( 400bps QoQ). It is now 12 .3% vs ISec estimate of 9 .4%.
Deferred revenue increased to Rs4bn ( + 24 % YoY) led by ~ 6 % QoQ growth in collections.
Just Dial has ~ 26 % revenue exposure to the B 2 B ecommerce segment.
Disclaimer
The stock has been picked from the brokerage report of ICICI Securities.
Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article.
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By Shubham Kumar Goodreturns source: goodreturns.in Dailyhunt