Sell Just Dial, target Rs 500: Goldman Sachs

Goldman Sachs maintains sell rating on Just Dial post March quarter results with a 12-month target price of Rs 500. The management has guided for a revenue growth at over 17% in Fy17, stepping back from 25% which was previously guided, said the brokerage note.

Deferred revenue remained flat suggesting growth in future years might be suppressed. Goldman Sachs remains concerned about heavy strategic focus on JD Omni as core search growth is slipping.

At 36X FY18E P/E, the stock trades at a premium to its global peers, offers 23% EPS CAGR.