Just Dial Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Just Dial Limited (NSE:JUSTDIAL) shareholders are probably feeling a little disappointed, since its shares fell 3.2% to ₹897 in the week after its latest quarterly results. Revenues were ₹3.0b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹18.77 were also better than expected, beating analyst predictions by 16%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the latest results, Just Dial's eight analysts are now forecasting revenues of ₹12.4b in 2026. This would be a modest 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to decrease 9.1% to ₹64.42 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹12.6b and earnings per share (EPS) of ₹62.78 in 2026. So the consensus seems to have become somewhat more optimistic on Just Dial's earnings potential following these results.

See our latest analysis for Just Dial

There's been no major changes to the consensus price target of ₹1,176, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Just Dial analyst has a price target of ₹1,360 per share, while the most pessimistic values it at ₹968. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Just Dial shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Just Dial's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2026 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Just Dial is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Just Dial following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Just Dial's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Just Dial. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Just Dial analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.