Accumulate Jyothy Labs, target price Rs 165: Geojit

Geojit has accumulate call on Jyothy Labs Ltd. with a target price of Rs 165. The current market price of Jyothy Labs Ltd. is Rs 141.8. Time period given by analyst is one year when Jyothy Labs 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 5111.54 Crore) operating in FMCG sector.

Jyothy Labs Ltd. key Products/Revenue Segments include Personal Care and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 542.66 Crore, down -8.04 % from last quarter Total Income of Rs 590.11 Crore and up 12.35 % from last year same quarter Total Income of Rs 482.99 Crore. Company reported net profit after tax of Rs 38.02 Crore in latest quarter.

Investment Rationale
Margin pressure is likely to remain in the short-term as the inflationary environment exits. JLL focuses on volume led growth by taking calibrated price hkes and cost reduction measures. Give JLL’s essential & hygiene products and focus on increasing distribution reach will support volumes going forward. The brokerage expects the sharp surge in input prices to normalise in FY23. It maintains Accumulate rating considering recent correction in the stock price with a revised Target of Rs.165 (earlier Rs.190) based on 24x FY23E EPS.

Promoter/FII Holdings
Promoters held 62.89 per cent stake in the company as of 31-Dec-2021, while FIIs owned 9.94 per cent, DIIs 18.29 per cent.