Just Dial Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Just Dial Limited (NSE:JUSTDIAL) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues disappointed slightly, as sales of ₹1.7b were 9.8% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of ₹7.90 coming in 18% above what was anticipated. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Just Dial

Taking into account the latest results, the current consensus from Just Dial's ten analysts is for revenues of ₹9.16b in 2022, which would reflect a major 25% increase on its sales over the past 12 months. Statutory earnings per share are expected to descend 11% to ₹35.59 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹9.27b and earnings per share (EPS) of ₹37.30 in 2022. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹688, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Just Dial at ₹860 per share, while the most bearish prices it at ₹530. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Just Dial's past performance and to peers in the same industry. The analysts are definitely expecting Just Dial's growth to accelerate, with the forecast 25% growth ranking favourably alongside historical growth of 4.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Just Dial to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Just Dial going out to 2023, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Just Dial that you should be aware of.

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