Jyothy Laboratories (JYL) has posted 5.7% yoy growth in net operating income to Rs4.1bn in 2QFY17 on the back of volume growth of 8%. Its consolidated EBITDA grew by 28% yoy to Rs637mn, while net profit surged by 61.1% yoy to Rs320mn. We estimate 13.1% & 19.3% CAGR in Revenues & EBITDA through FY16-18E. The stock has given impressive returns of 25% since our upgrade recommendation post 1QFY17 numbers. While we continue to remain positive on the medium-term growth prospects of JYL, the stock is fairly valued at 32x FY18E earnings, thus the near-term stock performance of JYL is likely to remain muted. Hence, we revise our recommendation on the stock to...