Buy Just Dial, target price Rs 444: Anand Rathi

Anand Rathi has given a buy rating to Just Dial with a target price of Rs 444. The share price moved up by 5.70 per cent from its previous close of Rs 385.65. The stock’s last traded price is Rs 407.65.

Just Dial Ltd., incorporated in the year 1993, is a Mid Cap company (having a market cap of Rs 2501.56 Crore) operating in Services sector.

Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 162.43 Crore, down 30.87 % from last quarter Sales of Rs 234.95 Crore and down 32.37 % from last year same quarter Sales of Rs 240.17 Crore. Company reported net profit after tax of Rs 83.32 Crore in latest quarter.


Investment Rationale
JUSTDIAL has witnessed a major breakout on the daily chart above Rs 400 mark from the falling trend line as displayed on the chart. In addition; there is another breakout which resembles typical inverse head and shoulder pattern. Even the daily RSI has confirmed the breakout along with price which indicates fresh upside. Thus traders can buy the stock with given setup in the range of Rs 404 –Rs 400.

Promoter/FII Holdings
Promoters held 33.4 per cent stake in the company as of June 30, 2020, while FIIs held 35.4 per cent, DIIs 16 per cent and public and others 15.1 per cent.