Just Dial stock gained after the brokerages turned bullish post the conference call yesterday, January 19, when the company outlined the future strategy with Reliance Retail as the promoter of the company.

Kotak upgraded it to a buy said that the company wants to add a layer of transaction over the existing search business, which means it's now looking to become a transaction based e-commerce player and this change in ownership to Reliance Retail will drive a change in strategy.

Also, the aggressive investments that the company is making in hiring talent, salesforce, building user-centric products may impact the near term profitability, but looking at the big picture, it is moving towards the transaction-based e-commerce company.

Also Read: Just Dial shares surge nearly 14%; here's what's boosting the stock

UBS acknowledged that Q3 is muted the company ramping up its sales presence is a big positive. UBS believes strengthening the sales network will improve the paid campaigns in the coming quarters and the company could benefit from Reliance's resources and expertise in building skills and logistic capabilities. It said that the existing businesses like JDMart are gaining traction, the B2C e-commerce pilot is likely to start next month and all that makes it fairly bullish which is why UBS too has a buy rating on the stock.

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