Outlook positive on Jyothy Labs: Ganesh Shanbhag

ET Now spoke to Ganesh Shanbhag of SMS Financial Services on his views on Jyothy Labs.

ET Now: What are your expectations from Jyothy Labs?

Ganesh Shanbhag: I think the stock will get re-rated. On an equity of 7 crore over last year, the profit jumped 100% to around 80 crore in March 2010. Now it's a zero-debt company again and again a dominant player in the whitener business in the garment whitener segment.

They are expected to do a placement, but being a zero-debt company, they can leverage themselves well and they are getting into the garment cleaning business also. So that will actually re-rate the stock once the placement is done.