Just Dial Locks Into 10% Upper Circuit As Kotak Securities Retains Buy Rating On Leadership Change

Shares of Just Dial hit the 10% upper circuit at Rs 704.55 on August 28, after Kotak Securities Limited (KSL) retained its ‘Buy’ rating on the local search platform and maintained a target price of Rs 1,175.

The stock locked at the upper circuit soon after the market opened and remained there through the session. At Rs 704.55, Just Dial's market capitalisation stood at around Rs 5,992 crore. KSL's target price implies an upside of more than 83% from the stock's previous close.

The research house's view comes as Just Dial enters a new phase under chief executive Dinkar Ayilavarapu, who took charge earlier this month after VSS Mani's tenure as managing director and CEO ended on July 31.

Kotak sees scope for a turnaround under new CEO

Dinkar Ayilavarapu took charge as Just Dial’s chief executive officer on August 1, replacing founder VSS Mani, whose tenure as managing director and CEO ended on July 31.

According to KSL, the new management is expected to put greater emphasis on merchant acquisition and returns on investment. The research house also sees scope for new product launches to support merchant additions.

Another focus area is business-to-business collections, where KSL expects Just Dial to pursue segments with limited or no competition. The strategy could help improve collections growth, which remained subdued in FY26.

Just Dial’s collections grew only 1.6% year-on-year during FY26, leaving a relatively low base for a potential recovery under the new management.

Who is Dinkar Ayilavarapu?

Ayilavarapu brings more than two decades of experience across digital commerce, retail and technology to the role.

Before joining Just Dial, he headed Flipkart Wholesale and was also Flipkart’s group head of strategy. Earlier in his career, he spent close to 15 years at Bain & Company, where he worked with telecom and technology companies on strategy and business transformation.

Just Dial had named Ayilavarapu as CEO-designate in July. The company also announced the appointment of Dinesh Taluja as chief financial officer as part of the leadership transition.

The management changes come after a period of relatively muted business momentum at Just Dial, with the company looking to improve growth and strengthen its operating performance.

Just Dial Q1 results

Just Dial's June quarter results showed growth in both profit and revenue, although operating margins came under pressure.

Net profit increased 4.1% year-on-year to Rs 166 crore, while revenue from operations rose 9.9% to Rs 327.5 crore. Operating EBITDA grew 1.1% to Rs 87.4 crore.

The operating EBITDA margin, however, contracted by 233 basis points to 26.7%.

Despite Friday's rally, Just Dial shares remain around 3% lower so far in 2026. The stock has nevertheless outperformed the Nifty 50, which is down about 7.6% over the same period.

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