5 February 2020 Jyothy Labroratories (JYL) 3QFY20 results were disappointing on all fronts. According to management, part of the impact was due to unusually low off- take in the CDS channel, which should normalize in the next quarter. With weak earnings growth expectations even on a low base and low RoEs compared to peers, we believe that valuations, while at discount to peers, are justified. EBITDA declined 9.3% YoY to INR651m (v/s est. PBT declined 24% YoY to INR441m (v/s est.