Accumulate Jyothy Labs, target price Rs 247: Geojit Financial Services

Geojit Financial Services has accumulate call on Jyothy Labs with a target price of Rs 247. The current market price of Jyothy Labs is Rs 210.05. Time period given by analyst is 12 months when Jyothy Labs price can reach defined target.

Jyothy Labs, incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 7718.73 Crore) operating in FMCG sector.

Jyothy Labs key Products/Revenue Segments include Personal Care and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 627.93 Crore, down -5.51 % from last quarter Total Income of Rs 664.54 Crore and up 15.71 % from last year same quarter Total Income of Rs 542.66 Crore. Company has reported net profit after tax of Rs 67.39 Crore in latest quarter.

The company’s top management includes Mr.M P Ramachandran, Mr.R Lakshminarayanan, Ms.M R Jyothy, Ms.M R Deepthi, Mr.Aditya Sapru, Mr.Nilesh Mehta, Ms.Bhumika Batra. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 37 Crore shares outstanding.

Investment Rationale
The brokerage expects margins to improve further in FY24, revenue/earnings to grow at ~10%/29% CAGR over FY22-24E, respectively, and value JLL at 26x FY25 P/E.

Promoter/FII Holdings
Promoters held 62.89 per cent stake in the company as of 31-Dec-2022, while FIIs owned 13.37 per cent, DIIs 17.13 per cent.