Just Dial share price: 5 key reasons why SBI Securities expects 14% upside for the stock. Remains its pick of the week

Stocks to Buy: Just Dial share price having risen 65% in last one year has given handsome returns to the investors. Just Dial still remains pick of the week for SBI Securities, who expect about 15% upside for Just Dial share price from hereon. The 12 month target price for Just Dial share price stands at ₹1449. Here are five key reasons why SBI Securities expects more upside for Just dial share price-

1- Just Dial (JD) remains a leading localized search engine in India with diverse service offerings. The service offerings of the company includes JDapps, JD business, JD Mart, JD Analytics, JD Pay, JD Omini etc. Just Dial apps are designed to meet all consumer needs, offering simple and intuitive business discovery services with quick results (price range, user ratings, social media handles etc) as per SBI Securities.

2- Just Dial has a robust business model, negative working capital: Jsut Dial's subscription plans work on a prepaid model, giving users the choice to pay upfront i.e ahead for the whole term of plan or select monthly advance payment plans via ECS. This approach has helped Just Dial maintain a negative working capital, zero receivables and uphold a debt-free balance sheet in addition to ensuring robust revenue visibility.

3- Pan India presence and Healthy industrial outlook also remain key drivers for Just Dial earnings as per SBI Securities.

4- Strong financial track record: Just Dial years has delivered strong performance with revenue and net profit rising 2.3 times and 3.0 times respectively during the past 10 year. Just Dila also has generated robust Ebitda margin of more than 20%. During FY24, its revenue and Net profit rose 23.5% and 123.0% YoY to ₹1,043 crore and ₹363 crore respectively.

5-Reasonable valuation: SBI Securities says that at current price the stock is trading at FY25 and FY26 estimated consolidated price to earnings of 22 times and 21.2 times respectively based on Bloomberg consensus estimate

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions