ICICI Securities has updated its target price for Just Dial to ₹825, noting 9.9% revenue growth and a rise in collections. Investors should track the upcoming management transition as founder VSS Mani steps down and Dinkar Ayilavarapu takes over in August.
ICICI Securities has updated its outlook on Just Dial, setting a target price of ₹825 per share. This adjustment follows the company's recent performance data, which indicated a 9.9% year-over-year increase in revenue. The growth was supported by a 3.5% rise in paid campaigns and adjustments to pricing strategies.
Financial data from the latest period reveals a 13.7% year-over-year growth in collections, suggesting steady demand for the company’s business listing services. However, while revenue and collections showed growth, the company’s operational profitability, measured by EBITDA margins, faced a decline of 233 basis points compared to the previous year. This margin pressure is linked to a rise in operating costs, specifically increased spending on marketing and a net addition of 267 employees during the quarter.
Despite the margin dip, the company’s platform activity remained notable. Active listings reached 56.1 million, reflecting a 12.9% increase on a year-over-year basis and a 2.6% rise compared to the previous quarter. This growth in listings serves as a core indicator of the company’s ongoing efforts to expand its database and reach.
Management Transition and Future Outlook
A primary point of focus for investors is the upcoming leadership change. Founder VSS Mani is scheduled to step down as CEO and Managing Director on July 31, 2026. Replacing him will be Dinkar Ayilavarapu, a former Flipkart executive, who has been named CEO-designate and is set to officially take charge on August 1, 2026. The company has also appointed a new Chief Financial Officer, Dinesh Taluja, to lead its financial operations.
Analysts suggest that the transition to new leadership will be a critical monitorable for the stock. Clarity regarding the strategic direction under the incoming management team may influence investor sentiment and the company’s future valuation. The current target price from ICICI Securities is calculated using a 3x one-year forward enterprise value to EBITDA multiple and a 12x one-year forward earnings per share multiple projected for the 2028 financial year.
Investors may keep track of how the new leadership addresses the recent pressure on profit margins. The balance between maintaining growth in active listings and managing the rising costs of headcount and marketing will likely determine the company's financial health in the coming quarters.