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Wednesday, August 17, 2016

Just Dial Q1 was an Utter Failure; Share Price Dips 3%

Just DialJust Dial shares dipped 8 per cent since the morning of 17th August, owing to the local search firm's disappointing quarterly numbers. Just Dial disclosed a net profit of Rs 38.9 crore on sales of Rs 176.29 crore in the June quarter. The company, which had disclosed sales of Rs 179 crore in the March quarter, posted its first ever sequential decline in revenue. The revenue hit was because of aggressive discounts to bag more business.
Paid listings form the core of Just Dial's operations, but they have come under pressure for the last few quarters due to the tough competition from the renowned companies such as Zomato and Practo. Consequently, Just Dial has lost market share in sectors including food orders and doctor appointments over the last few months. The company further added a 6 per cent fall in average realization per campaign throughout the June quarter. Its lowest ever margin in the June quarter was caused by higher employee expenses. The company had previously announced that it was going to recruit more sales people to drive business.
As of 11.42 a.m., Just Dial shares traded 3 per cent lower at Rs470.30, opened at Rs. 479.00 against its previous closing at Rs. 485.65. 
Market Synopsis
Just Dial is one of the top 500 stocks recommended by Dynamic Levels for this quarter. Just Dial share price traded at its 52 week high at 1077.90 on 14th Oct ‘15 while the 52 week low is observed at Rs 375.70 on 12th Feb ‘16. The Average Daily Movement of the stock is 34.81 and its average volume for last 20 days is 1779910. Approximately 7.8 lakh shares were traded in the counter, as per NSE. The PE ratio of the stock is 24.18. The market cap of the company amounts to Rs. 3425.61 (Cr) and has a book value of Rs. 95.46. For further details on the support and resistance refer to Just Dial share price forecast.

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