Just Dial hits lifetime low; slips below QIB issue price

Post December quarter results, the stock plunged 37% as compared to 2% decline in Sensex.

Shares of Just Dial have touched its lifetime low of Rs 493, down over 9% on the BSE. With this, the stock has fallen below its issue price of Rs 530 for qualified institutional buyers (QIB).

The company had raised Rs 919 crore though initial public offer (IPO) in May 2013, issued equity shares at price of Rs 483 per share to retail individual investors.

Meanwhile, post October-December quarter (Q3FY16) results, the stock plunged 37% from Rs 785 on January 27, as compared to 2% decline in the S&P BSE Sensex. It tanked 66% from its 52-week high of Rs 1,488 touched on February 9 last year.

The company engaged in search and related services business had posted 16% year-on-year (y-o-y) drop in its net profit at Rs 26.99 crore for the third quarter ended December 31, 2015 (Q3FY16). Slowing growth in paid campaigns also impacted Just Dial's revenues in the December quarter, which grew 11% y-o-y to Rs 171 crore, its lowest growth since listing.

Analysts at Nirmal Bang Institutional Equities Research believes that the market is giving the company’s stock a higher multiple for Search Plus and we need to study this aspect in greater detail.

“We have put the rating of Just Dial under review on account of lack of clarity on full-fledged launch of Search Plus service, difficulty in ascertaining the timeline as well as the impact of monetisation of Search Plus transactions, and reassessment of growth and margin profile of the core listing business,” points out a Nirmal Bang report dated January 29, 2016.

At 10:56 AM, the stock was down 8% at Rs 499 on the BSE. A combined 3.08 million shares changed hands on the counter on the BSE and NSE.