iStock has buy call on Jyothy Labs with a target price of Rs 220. The current market price of . is Rs 175.4. Time period given by analyst is one year when Ltd. price can reach defined target.
Jyothy Labs Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 6426.15 Crore) operating in FMCG sector.
Jyothy Labs Ltd. key Products/Revenue Segments include Personal Care and Scrap for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 610.43 Crore, up 10.50 % from last quarter Total Income of Rs 552.44 Crore and up 15.19 % from last year same quarter Total Income of Rs 529.95 Crore. Company reported net profit after tax of Rs 47.73 Crore in latest quarter.
Investment Rationale
Gross margins for Jyothy Labs have contracted by ~580bps in FY22 over FY20 largely due to (1) steep input cost inflation and (2) underperformance by relatively high-margin fabric care segment. Despite significant decline in gross margins, Jyothy Labs has maintained ad-spends impacting EBITDA margins significantly. EBITDA margin decline could reverse partially with expectations of input cost correction in 2HFY23. The brokerage believes that continued investment in brand building will likely further drive market share gains for JYL.
Promoter/FII Holdings
Promoters held 62.89 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.47 per cent, DIIs 18.14 per cent.
Jyothy Labs Ltd., incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 6426.15 Crore) operating in FMCG sector.
Jyothy Labs Ltd. key Products/Revenue Segments include Personal Care and Scrap for the year ending 31-Mar-2022.
Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 610.43 Crore, up 10.50 % from last quarter Total Income of Rs 552.44 Crore and up 15.19 % from last year same quarter Total Income of Rs 529.95 Crore. Company reported net profit after tax of Rs 47.73 Crore in latest quarter.
Investment Rationale
Gross margins for Jyothy Labs have contracted by ~580bps in FY22 over FY20 largely due to (1) steep input cost inflation and (2) underperformance by relatively high-margin fabric care segment. Despite significant decline in gross margins, Jyothy Labs has maintained ad-spends impacting EBITDA margins significantly. EBITDA margin decline could reverse partially with expectations of input cost correction in 2HFY23. The brokerage believes that continued investment in brand building will likely further drive market share gains for JYL.
Promoter/FII Holdings
Promoters held 62.89 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.47 per cent, DIIs 18.14 per cent.
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