Jyothy Labs Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Jyothy Labs (JLL) posted healthy 8.3% revenue growth (GST comparable growth: 15.9%) to | 417.5 crore led by 11.5% volume growth. The strong volume growth was on the back of 3.6% volume dip in base quarter due to demonetisation impact. Also, rural demand scenario improved due to normal monsoon in 2017 Power brands Ujala, Exo, Henko, Margo and Pril witnessed strong growth of 17.3%, 19.1%, 23% and 43.4%, respectively. However,...

1. The company reported a GST comparable topline growth of 15.9% to `431 crs. The growth was driven by the dishwashing and personal care categories. Volume grew by 11.5% YoY. Power brands GST comparable growth was at 17.5%. 2. Operating profit in Q3 grew by 36.8% to `69.3crs. with margins expanding from13.2%...

Backed by 11.5% volume growth, Jyothy Laboratories (JYL) has reported revenues, EBITDA and net profit of Rs4.3bn, 693mn and 329mn, respectively in 3QFY18. Adjusted for GST-related accounting impact, revenues for the quarter rose by 15.9% YoY. We expect JYL to report revenue and adjusted earnings CAGR of 9.8% and 21%, respectively through FY17-20E. We remain positive on the stock considering strong earnings growth and reasonable valuations at 27.5x FY20E earnings (20% discount to sector multiples ex-ITC). Hence, we maintain our BUY recommendation on the...

Consol. net sales grew 12.3% YoY to INR4.3b. Reported power brand sales grew just 9.3% YoY. EBITDA rose 36.8% YoY to INR693m (est. of INR610m). Adj. PAT after non-controlling interest (NCI) grew 61.5% YoY to INR347m (est. of INR347m). Fabric care, Dish washing and Personal care grew 9%, 12.4% and 30.9%, respectively, while Household Insecticides fell 17.1% YoY. Changes to the model have not resulted in material changes in FY18/FY19/FY20E EPS. Pace of earnings growth (for FY17-20E) appears moderate for a company that is much smaller in terms of size compared to mid-cap peers. RoE is also at a discount to peers at ~18% and 21.7% for FY19E and FY20E, respectively. Given these worries, valuation of 21.8x FY19E EV/ EBITDA and 33.8x FY19E EPS does not offer scope for a significant upside. Targeting 20x Dec'19E EV/ EBITDA (20% discount to staples peers' average),we get a TP of INR380 (INR375 earlier). Maintain Neutral.

1. The company reported a GST comparable topline growth of 9.6% to `430crs. The growth was driven by the Dishwashing and Personal Care categories. Volume grew by 3.5% YoY. Power brands GST comparable growth was at 11.4%....

Jyothy's stock has corrected ~14% today, as Henkel did not exercise the option to buy 26% stake in Jyothy a major trigger for Jyothy. Stock has de-rated from 1-year average forward PE of 35x to 30x now, which is very much on expected lines.

JLL's (standalone) revenue came in at | 419.3 crore, 9.5% YoY growth (GST comparable), against our estimate of | 406.9 crore. Revenue growth was supported by some revival in rural consumer demand...

Henkel Buyback Lapses; Overshadows Decent Operating Performance Jyothy Laboratories (JYL) has reported a decent set of results in 2QFY18. While its reported consolidated sales grew by 4.3% YoY to Rs4.3bn, comparable revenue growth post accounting for GST stood at 9.6% YoY. Volume grew by a modest 3.5% YoY during the quarter. Consolidated EBITDA increased by 11.3% YoY to Rs709mn with 100bps YoY improvement in EBITDA margins to...

Henkel option agreement lapsed; operating performance below expectation Consol. net sales grew 4.3% YoY to INR4.3b. Reported power brand sales grew just 0.8% YoY. EBITDA rose 11.3% YoY to INR709m (est. of INR741m). Adj. PAT after non-controlling interest (NCI) grew 48.5% YoY to INR476m (est. of INR476m). Fabric care and Mosquito repellent fell 6.2% and 4.4% YoY, respectively. Dishwashing segment was flat and Personal care grew 38.9% YoY. Consol. gross margin contracted 90bp YoY to 48.1%. Other expenses declined sharply by 230bp YoY, while staff costs and A&P; rose 10bp and 40bp,...

While restocking-led recovery is seen in Q2 (General Trade growth at 18% in July), Jyothy Laboratories (JYL) went on fixing issues at different channels of supply chain: (i) impact of wholesale disturbance by strategizing to reach affected centers via new sub-stockists