Simply Dial shares rocket 36% in two days! Why Citi, Kotak, others suppose Reliance-backed inventory can rally as much as 62%?
The corporate’s internet revenue was Rs 166.2 crore, up 4.1% year-on-year, whereas income rose 9.9% YoY and 6.6% sequentially to Rs 327.5 crore.
The corporate’s EBITDA stood at Rs 87.4 crore, up 1.1% from a 12 months in the past, with EBITDA margin remaining wholesome at 26.7%. Throughout the quarter, visitors measured by quarterly distinctive guests stood at 192.9 million customers. As of June 30, 2026, the corporate had money and investments value Rs 6,022.1 crore on its steadiness sheet.
Reliance Retail Ventures Ltd, a subsidiary of Reliance Industries, held a 63.84% stake in Simply Dial as of March 31, 2026, based on the corporate’s newest shareholding sample.
Additionally learn: Simply Dial CEO VSS Mani to step down; former Flipkart govt Dinkar Ayilavarapu named successor
Citi, Kotak, ICICI Securities see large upside
With a goal value of Rs 930, the brokerage forecasts one other 36% upside from present market ranges. Citi raised its income estimates for Simply Dial by 4% for FY27 and 6% for FY28, pushed by faster-than-expected progress supported by salesforce additions and the corporate’s Q1 efficiency.
Nevertheless, Citi mentioned it will look ahead to sustained investments and better readability on the corporate’s renewed B2B go-to-market technique earlier than turning extra constructive on progress past FY27. It additionally expects near-term investments to extend and has lowered its EBITDA margin estimates to twenty-eight% for FY27 and 29% for FY28, from 29% and 31%, respectively. Regardless of the margin revision, Citi mentioned its EBIT estimates stay largely unchanged.
Analysts at Citi worth the inventory at an ex-cash P/E of 6x March 2028E earnings, representing a 65% low cost to its five-year common P/E of 18x in addition to to India’s benchmark index. Citi cautioned that whereas the corporate continues to ship income progress, supported by greater paid campaigns and higher realisations, a sustained decline in visitors stays a key threat and will finally weigh on each metrics.Learn extra:This Ambani-owned inventory’s market cap slips under money steadiness. Is it a deep worth choose?
Kotak on Simply Dial
Kotak Institutional Equities reaffirmed its Purchase name and a goal of Rs 1,110, predicting a large upside of 62% from present ranges. The brokerage raised its FY27-29 income estimates by 2-3% to replicate higher billings progress, whereas additionally rising its price assumptions to account for greater worker and promoting bills. It famous that the corporate is presently targeted on its core enterprise, with minimal emphasis on new initiatives.
Kotak continues to worth the inventory at 11x June 2028E core P/E, to which it provides the worth of money, to reach at its honest worth of Rs 1,100. It added that any transfer by the corporate to return money to shareholders may act as a key set off for the inventory.
ICICI Securities cuts Simply Dial goal value
Whereas sustaining its Purchase ranking on Simply Dial, the brokerage slashed its goal value to Rs 825 from Rs 968. The brokerage values the inventory at 3x one-year ahead EV/EBITDA and 12x one-year ahead EPS (FY28E).
It mentioned the important thing draw back dangers embrace the shortage of readability on money distribution within the close to time period and slower progress in paid campaigns and listings. Then again, ICICI Securities believes improved visibility on returning money to shareholders and stronger-than-expected progress in paid marketing campaign conversions may act as key upside triggers for the inventory.
Simply Dial is a number one native search platform in India, providing search and discovery providers. Simply Dial shares are up 5% on a YTD foundation. Within the final one 12 months, the inventory has fallen 19%.
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t characterize the views of The Financial Occasions)
