Jyothy Labs Ltd. share price target

For 4QY2016, Jyothy Laboratories (JLL) reported a top-line growth of 11.1% yoy to Rs445cr. On account of lower raw material and employee expenses as a percentage of sales, the EBITDA margin expanded by 431bp yoy to 14.1%. Interest expenses declined by 83.7% yoy to Rs1cr while the tax rate was higher at 35% vs 11.4% in 4QFY2015. On account..

Power Brand sales grew by 10.3% (9.5% by volume) in FY16. Power Brand sales grew by 13.6 % (Volume 15.3%) in Q4. Operating Profit (including ESOS) for FY16 was at `220.1 crore (13.4%) as compared...

ICICI Securities Ltd | Retail Equity Research Jyothy Labs (JLL) reported better than expected numbers on sales & operational front while PAT came in below expectation. Sales growth...

Jyothy Laboratories' 4QFY16 results were slightly ahead of our estimates with its consolidated net sales growing by 12.4% to Rs4.5bn (v/s our estimate of Rs4.3bn) and net profit by 31.6% to Rs356mn (v/s our estimate of Rs346mn). Quarterly volume grew by an impressive 13.7% with power brands growing by 15.3%. We expect the Company to deliver revenue and earnings CAGR of 13% & 13.4% through FY16-18E and change...

JLL is a multi-product company with strong market position in the fabric whiteners segment on the back of brand name Ujala. JLL has created a unique portfolio named Powerbrands, which includes six brands namely Ujala, Henko, Maxo, Pril, Exo and Margo. Revenue contribution from Powerbrands comes to 88% of the total revenues, which is Rs.12890 Mn in FY15 and growth rates registered for FY15 is 16%. JLL is investing in advertisement and promotional activities to market Powerbrands aggressively to focus on brand building and to maintain growth rate in coming years. Total advertising and promotional expense comes to 12% of the total revenues.

Jyothy Laboratories six power brands Ujala, Maxo, Exo, Henko, Pril and Margo are contributing 80% of its total business. To improve its brand visibility in urban markets, the company has rolled out account activation programmes in open format outlets (OFOs) and going forward it will extend a programme to key grocers as well as in the top forty cities in India. Selective outlet focus has helped in building brand presence and higher revenue growths.

EBIDTA (considering ESOP as operating expense) grew by 40.4% Y-O-Y and 3.6% Q-O-Q to `51.0crs. in Q3FY16. Correspondingly EBITDA for the 9 months was `169.0crs. showing a healthy growth of 32.3%....

On the back of 9% growth in volumes, Jyothy labs reported revenues of Rs3.7bn (estimate of Rs3.8bn), a growth of 7.6% yoy. EBITDA grew by 57.1% to Rs492mn ahead of our estimates of Rs436mn. Net profits too increased 30.3% to Rs387mn vs. our estimate of Rs363mn. While gross margins expanded by 230bps, EBITDA margins advanced 420bps to 13.4% on the back of higher gross margins and lower employee costs (down 230bps as % of sales). We estimate 11.4% and 14.7% CAGR in revenues and earnings...

Operating profit in Q2FY16 grew by robust 40.1% 40.1 y-o-y to `55.3 crores on the back of benign raw material costs and product mix. The company managed to...