Buy Jyothy Laboratories, target price Rs 135: IIFL Securities
Around 85 per cent of the company’s product portfolio falls in the health and hygiene space, which is what the consumers are spending on in current times, said IIFL.
IIFL Securities has maintained buy rating on Jyothy Laboratories with a target price of Rs 135. Shares of Jyothy Laboratories ended up 0.2 per cent at Rs 116.85 on Tuesday while the BSE Sensex closed 413.89 points down (-1.20 per cent) at 33,956.69.
Jyothy Labs, incorporated in 1992, has a market cap of Rs 4287.16 crore.
Investment Rationale
The company’s fourth-quarter results were significantly below estimates, said IIFL Securities. Around 85 per cent of the company’s product portfolio falls in the health and hygiene space, which is what the consumers are spending on in current times, said IIFL. However, products such as Ujala fabric whitener and Crisp and Shine could see a large impact, said IIFL.
Financials
For the quarter ended March 31, 2020, the company reported consolidated sales of Rs 393.00 crore, down -6.60 per cent from last quarter sales of Rs 420.79 crore and down -23.83 per cent from last year's same quarter sales of Rs 515.98 crore. The company reported net profit after tax of Rs 26.59 crore in the latest quarter.
Promoter/FII Holdings
Promoters held 62.89 per cent stake in the company as of March 31, 2020, while FIIs held 14.70 per cent, DIIs 15.78 per cent and public and other 6.63 per cent.
Jyothy Labs, incorporated in 1992, has a market cap of Rs 4287.16 crore.
Investment Rationale
The company’s fourth-quarter results were significantly below estimates, said IIFL Securities. Around 85 per cent of the company’s product portfolio falls in the health and hygiene space, which is what the consumers are spending on in current times, said IIFL. However, products such as Ujala fabric whitener and Crisp and Shine could see a large impact, said IIFL.
Financials
For the quarter ended March 31, 2020, the company reported consolidated sales of Rs 393.00 crore, down -6.60 per cent from last quarter sales of Rs 420.79 crore and down -23.83 per cent from last year's same quarter sales of Rs 515.98 crore. The company reported net profit after tax of Rs 26.59 crore in the latest quarter.
Promoter/FII Holdings
Promoters held 62.89 per cent stake in the company as of March 31, 2020, while FIIs held 14.70 per cent, DIIs 15.78 per cent and public and other 6.63 per cent.