Buy Jyothy Labs, target price Rs 600: HDFC Securities
HDFC Securities has a buy call on Jyothy Labs with a target price of Rs 600. The current market price of Jyothy Labs is Rs 424.65. Jyothy Labs, incorporated in 1992, is a Mid Cap company with a market cap of Rs 15687.15 crore, operating in FMCG sector.
Jyothy Labs' key products/revenue segments include Personal Care, Sale of services and Scrap for the year ending 31-Mar-2024.
Financials For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 746.29 crore, down -1.22 % from last quarter Total Income of Rs 755.53 crore and up .10 % from last year same quarter Total Income of Rs 745.57 crore. The company has reported net profit after tax of Rs 105.02 crore in the latest quarter.
Investment Rationale
HDFC Securities has cut its EPS estimates by 5-6% for FY25-26 to account for consumer slowdown and maintain Jyothy Labs (JYL) as a high conviction BUY idea, with a target price of Rs 600, (42x Dec-26 EPS), as it is one of the few FMCG companies structurally poised for high single-digit volume growth, low-teen EBITDA growth, and mid-teen net income growth. The brokerage has penciled in revenue/EBITDA/PAT CAGRs of 9/12/14% for FY24-27, the second highest amongst its coverage of consumer staple companies.
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