Shares of Just Dial Ltd are likely to be in focus after key brokerages Citi and Nuvama maintained their Buy ratings but lowered target prices, citing a weak Q2FY26 performance, muted traffic growth, and margin pressures from rising costs. The stock last closed at ₹861.50.
Citi on Just Dial share: Buy, Target Price ₹1,060
The brokerage reiterated its Buy rating but cut the target price to ₹1,060 per share, noting that Q2 results were largely in line with expectations on revenue but EBITDA came in slightly below estimates. Citi said traffic on the platform declined 0.2% year-on-year, underscoring the need for higher investment in sales, product innovation, and traffic acquisition. The brokerage added that future EBITDA growth beyond top-line expansion will depend on operating leverage and efficient cost management.
Nuvama on Just Dial share: Buy, Target Price ₹1,200
Nuvama also maintained its Buy rating while lowering the target price to ₹1,200 per share after the company reported a weaker-than-expected Q2FY26 performance. The brokerage said EBITDA margin was in line with estimates, but profit after tax fell short due to higher employee and advertising expenses. Paid campaigns grew 1.1% quarter-on-quarter and 4.3% year-on-year, but overall profitability remained under pressure. Nuvama cut its FY26/FY27 EPS estimates by 5.8% and 3.9%, respectively, to reflect a slower growth and lower margin outlook.
Both brokerages expect Just Dial’s near-term performance to remain constrained by higher spending on business expansion but remain positive on long-term growth potential driven by strong brand recall and market leadership in SME listings.
Disclaimer: This article is for informational purposes only and not a recommendation to buy or sell any securities. Brokerage ratings and target prices are based on their respective research reports and publicly available information.
