Shares of Just Dial dropped 2 per cent in Tuesday’s trade after Reliance Retail Ventures (RRVL), the promoter of the company, said it intends to sell shares of the company via open market sale to comply with minimum public shareholding norms.
RRVL will be undertaking a sale of 16,86,119 shares, constituting 2 per cent of the total paid-up equity share capital of the company, Just Dial told stock exchanges in a filing.
RRVL intends to complete the sale of the sale shares within a period of eight trading days beginning December 21, the company told BSE.
Following the development, the stock fell 1.98 per cent to hit a low of Rs 610 on BSE. Against sell orders of 8,330 shares, the counter had buy orders of 2,75,473 shares on BSE at 9.30 am.
The scrip has jumped 17 per cent from its June low, but is still down 25 per cent year-to-date.
Nuvama in a recent note said Just Dial’s improving performance in the core business has recouped some of the lost confidence. While Just Dial’s metrics inch towards pre-covid levels, Nuvama believes the company needs to demonstrate consistent performance in business execution.
“We are building in 19.8 per cent revenue CAGR over FY22-FY25E and expect margin to improve from minus 0.3 per cent in FY22 to 20.9 per cent in FY25, led by growth and operating leverage,” it said.
The stock is trading at an attractive 17.7 times FY24E EPS and cash of Rs 450 per share that constitutes 75 per cent of the prevailing price. Nuvama has a ‘HOLD rating on the stock with a target of Rs 672 per share based on 20 times Q4FY24E EPS.
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