Many investors believed that Just Dial, after being acquired by Reliance Industries, would become a long-term wealth creator. With Reliance’s reputation for transforming businesses, shareholders were optimistic. However, reality turned out to be different. Over the last one year, Just Dial’s share price has fallen sharply — from its 52-week high of Rs.1,395.00 to its 52-week low of Rs.751.80. This steep decline has caused a big dent in investors’ portfolios, raising questions about the company’s performance despite a strong parent group.
The sharp fall in price has been surprising because Just Dial’s recent financial performance does not look bad on paper. In June 2025, the company reported revenue of Rs.297.86 crore, up 6.16% year-on-year, and a net profit of Rs.159.65 crore, which is a 13.05% increase from last year. Diluted EPS stood at RS.18.77, growing by 13.07%, and the net profit margin was a healthy 53.6%. Yet, these numbers have not been enough to restore investor confidence.
Why the Share Price is Falling
One major reason for the decline could be the mismatch between expectations and reality. Investors expected Reliance to quickly scale up Just Dial’s operations, integrate it into its broader digital ecosystem, and improve its visibility and monetization. However, the pace of transformation seems slower than anticipated.
Another factor could be the competitive environment. The local search market is facing stiff competition from Google, IndiaMART, and other niche platforms. This makes it harder for Just Dial to maintain its dominance, especially when user habits are shifting towards voice search and AI-powered assistants.
Market sentiment has also been impacted by broader economic factors, including rising interest rates, uncertain consumer spending trends, and cautious investor sentiment towards mid-cap tech companies. Even though Just Dial’s P/E ratio of 11.71 suggests the stock is not overly expensive, investors seem unwilling to bet big without clear growth triggers.
52-Week Price Fall — Visual Representation
The above bar graph clearly shows the steep drop in share price over the last year. From Rs.1,395 in August 2024 to Rs.751.80 in August 2025, the decline represents a loss of over 46% from the peak, erasing significant market capitalization.
Reliance’s Controlling Stake — Not a Guaranteed Win
It is important to remember that even when a big group like Reliance takes over a company, it doesn’t guarantee short-term stock market success. Business transformations take time, and integration into a parent company’s ecosystem is a gradual process. For Just Dial, while Reliance’s resources and network are significant strengths, the benefits may take longer to show in financial results and stock price.
What Should Shareholders Do?
Long-term investors may consider holding if they believe in Reliance’s long-term vision for Just Dial. However, it’s crucial to track upcoming earnings reports, integration updates, and product innovations. Traders, on the other hand, should be aware that volatility may continue, and price recoveries might be slow unless a major catalyst appears.
In conclusion, the Just Dial story is a reminder that even well-backed companies can face challenging times. Shareholders must balance optimism with realistic expectations and avoid making investment decisions based solely on ownership by a big corporate group.
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