Jyothy Labs Limited - Technofunda | Globe Capital Market LTD.
Jyothy Labs Limited – Technofunda

At the CMP of Rs 168, the stock is trading at ttm P/E multiple of 29.32 times only which is lower than the 5 years

Overview and Recommendation


At the CMP of Rs 168, the stock is trading at ttm P/E multiple of 29.32 times only which is lower than the 5 years average price to earning multiple.


Jyothy Labs Limited was founded in 1983 by Mr. M. P. Ramachandran in Thrissur, Kerala. With a humble beginning as a single-unit, single-product manufacturing company, the Company has grown significantly to become a leading FMCG player with a pan- India presence and several household brands. In August 2008, the Company forayed into a synergistic laundry services segment with the launch of Fabricspa in Bengaluru and currently operates 150 outlets across India.

Key Triggers:

Q4 FY21 Earnings: The Company has reported 2.59% rise in consolidated net profit at Rs 27.28 crore for March quarter of the last fiscal year, on account of exceptional expense of Rs 23.5 crore due to excise duty receivable for previous years of Rs 23.5 crore written off pursuant to change in the government policy as compared to a net profit of Rs 26.59 crore in January-March 2019-20. Revenue from operations was 26% higher at Rs 495.11 crore during the period under review as against Rs 393 crore in the same period a year ago.

Wide basket of products & huge Distribution Networks: It has a wide basket of products marketed under six power brands that cater to diverse household requirement – Ujala and Henko in the fabric care, Exo and Pril in the dishwash segment, Maxo in the household insecticides, and Margo in the personal care & the Company has 27 state-of-the-art plants across 23 locations and an extensive distribution network of 0.86 million outlets directly reachable, through which it serves and delights millions of Indians every day.

Valuation & View:

At the CMP of Rs 168, the stock is trading at ttm P/E multiple of 29.32 times only which is lower than the 5 years average price to earning multiple.

Key Risk:

Any disruption in the supply chain can adversely impact production and finished goods distribution and thus impact its revenue.

Technical View:

Jyothy Lab has witnessed breakout from the Inverted Head & Shoulder pattern (bullish reversal pattern) on weekly chart with noticeable rise in volumes.

Going ahead, we expect it to test 220 levels in near term.


Considering both the factors fundamental & technical parameter, we recommend a ‘BUY’ in JYOTHYLAB at current level for the target price of Rs. 220 with close below stop loss of Rs. 145.


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