Jyothy Labs Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Jyothy Labs (JLL) reported 4.3% YoY growth in net sales to | 383.9 crore (I-direct estimate: | 359.2 crore) despite the impact of demonetisation. The company was able to take immediate steps like a) switch to lower SKUs, b) higher volume push in modern trade and canteen store to minimise the impact of demonetisation Additionally, JLL cut advertisement cost and simultaneously focused on promotional spend, helping push higher volumes. On a...

In terms of brand-wise performance, Henko reported 20% yoy growth, while flagship brand Ujala saw 7.5% yoy growth and dish-washing brands i.e. Exo & Pril grew by 2 & 3% yoy, respectively. Maxo was the laggard with 15% yoy de-growth. Consolidated gross margins fell by 290bps to 45.5% owing to rising crude prices. A&P; spends declined by 110bps yoy to 7% of sales, while other expenses dipped by 70bps yoy to 14.1% of sales. Higher cost of inputs led to 60bps yoy decline in consolidated EBITDA to 13.1%. The Management stated...

Net sales showed a growth of 6.6% Y-O-Y to `397.5 crs in Q2FY17. Gross Margin at 46.5 % Vs 45.9 % in the same period last year. EBIDTA grew by 29% Y-O-Y to `63.4 crs in the quarter. quarter EBIDTA Margins expanded...

Stable volume growth in Q2FY17 and margin expansion is expected to improve further: Jyothy Laboratories Ltd (JLL) has delivered steady volume growth of 8.0% in Q2FY17, compared to 9.0% volume growth in Q2FY16. The company has reported total income from operations at Rs.4339 Mn during this quarter, clocking 6.6%growth YoY compared to Rs.4072 Mn in Q2FY16. The companys EBITDA margin decreased by 281 bps to arrive at 14.7% due to increase in other expenses and advertisement & Sales promotion expenses during the quarter when comparedwith 17.5% during Q1FY17.

ICICI Securities Ltd | Retail Equity Research Jyothy Labs (JLL) reported 7.8% YoY net sales growth to | 416 crore (I-direct estimate: | 432 crore) led by 12.9%, 5.1% & 3.9% YoY growth in dishwashing, insecticide & fabric care segments, respectively. However, personal care segment remained flat YoY Consolidated revenues grew 6.6% on account of 8% volume growth Power brand sales grew 5.8% (7.2% volume growth). Exo, Henko & Pril grew 13.0%, 11.3% & 9.1% YoY, respectively. However, Ujala...

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...

Healthy Volumes and Higher Margins on the Back of Softer Input Costs: Jyothy Laboratories Ltd (JLL) has delivered healthy volume growth of 10.2% in Q1FY17, when compared to 5.6% volume growth in Q1FY16. The company has reported total income from operations at Rs.4403 Mn during this quarter, clocking8.9% growth YoY when compared to Rs.4043 Mn in Q1FY16 on the back of double digit growth in volumes. The company's EBITDA margin improved by 368 bps to reach 18.0% on the back of lower raw material costs due to slowdown in commodityprices and lower employee costs decreased by employee stock option expenses during the quarter compared with 14.4% during Q1FY16.

EBIDTA grew by 17.2% Y-O-Y to `80.9crs in the quarter. quarter EBIDTA Margins were at a record high, and expanded by ~130bps to 18.4 4%. This was due to an increase in...

Jyothy Labs (JLL) reported net sales growth of 8.7% YoY to | 422 crore (I-direct estimate: | 441 crore) on the back of 10.3%, 9.4% & 14.1% growth in fabric care, dishwashing & personal care segments respectively. However, household insecticides segment declined 11.4%. Consolidated revenues grew 8.9% on the back of 10.2% volume growth .Power brand sales grew 8% (9.6% volume growth). Ujala, Margo, Exo, Henko, Pril grew 10.8%, 12.2%, 10%, 9.6% & 8.4%, respectively. However, Maxo reported a decline of 11.3% due to extended summer impacting insecticide sales adversely. ICICI Securities Limited value the stock at 27x its FY18E EPS of | 12.1 to arrive at a target price of | 328/share with BUY rating.

Broad based growth; Reasonable Valuations Warrant an Upgrade Backed by 10.2% volume growth, Jyothy Laboratories (JYL) reported 8.9% yoy rise in consolidated sales to Rs4.4bn in 1QFY17. While EBITDA grew 36.9% yoy to Rs791mn, consolidated net profit stood at Rs459mn. Cash profit rose by 25% yoy to Rs544mn in 1QFY17. We expect JYL to post 13% & 14% CAGR in revenues and earnings through FY16-18E. The stock currently trades at reasonable valuation of 25.4x FY18E earnings which coupled with expected uptick in growth makes it an attractive investment opportunity. Hence, we revise our recommendation on the...