Jyothy Labs Ltd. share price target

Jyothy Labs (JLL) witnessed revenue growth of 6.3% to | 434.3 crore on the back of 6.1% overall volume growth. The company has taken price increase only in detergent category to the tune of 3%, which translates in less than 1% realisation growth for JLL Power brands Exo, Maxo, Henko & Pril saw strong growth of 7.6%, 10.5%, 17% & 12.1%, respectively. However, Margo brand declined 8.1% whereas Ujala witnessed muted growth of 1.9% EBITDA margins were flat in Q3FY19 (down 16 bps to 16.5%)...

24 January 2019 INR4.7b) in 3QFY19, led by volume growth of 6.1% YoY. (16.7% v/s 22.7% in the year-ago period). Staff cost increased marginally by 10bp YoY to 10.6% of sales, while other expenses were flat at 14% of sales. Lower ad spends (-60bp YoY to 5.5% of sales), thus, restricted EBITDA margin contraction to 20bp YoY (16.5% v/s our estimate of 17%).

ICICI Securities Ltd | Retail Equity Research JLL launched 100% natural and chemicals free incense stick - Maxo Agarbatti in Q2FY19. The mosquito repellent incense stick category has posted 101% revenue CAGR in last three years with a size of | 385 crores (YTD CY18). The market currently consists of hundreds of local brands of which many are illegal/unorganised and use harmful pesticides. With high growth and huge popularity being witnessed in this segment, we believe JLL has made the right move to capture the opportunity by foraying into...

1. Jyothy Laboratories (JLL) reported a 7.1% YOY increase in net sales to `427.7 crs with underlying volume growth of 4.4%. The growth was driven by the Dishwashing, Fabric Care and Personal Care categories. Power brands growth was at 6%. 2. EBIDTA increased 13.2% YOY to `73.2crs with margins expanding from 16.1% to...

Jyothy Laboratories Ltd (JLL) is an Indian FMCG player with products across Fabric care, Dishwashing, Mosquito repellents & Personal Care. JLL reported 7%YoY growth in revenue in Q2FY19. Adjusting the flood impacts in Kerala (Rs25-30cr) the growth would have been 13-14%YoY. Revenue growth was driven by healthy growth in dish wash (13.9%) and fabric care (10.8%), however insecticide witnessed de-growth of 19.8%. JLL has taken price hike of ~7% in detergent category and had withdrawn some price offers which aided 150bps improvement in gross margin....

Jyothy Labs (JLL) witnessed revenue growth of 7.1% to | 427.7 crore, partially supported by 4.4% volume growth in addition to average price hike of 5% taken in detergents category Power brands Ujala, Exo, Henko, Margo & Pril saw strong growth...

24 October 2018 INR4.9b) in 2QFY19. Volumes increased 4.4% YoY in the quarter. EBITDA margin, 18.3%) due to higher staff costs (+70bp YoY as % of sales) and other expenses (+30bp YoY), partly offset by lower A&P; costs (-30bp YoY). EBITDA margin expanded 150bp YoY to 16.1%.

We initiate coverage with a BUY for a price target of Rs 270 representing an upside of 22.7% from the CMP of Rs 220 over the next 24 months. We expect the revenues to grow by 12% CAGR to INR 2485 crores by FY2021. On the back of robust revenues, we expect the EBITDA and PAT to grow to Rs 410 crores (18.8% CAGR) & Rs 277.3 crores (15.7% CAGR) respectively by FY21. Operating margins are also set to improve by 120 bps to 16.5% by FY21. Return ratios ROE & ROCE are also expected to remain elevated at 17.1% and 18.6% respectively.

Power Brands The Power brands (87% of net sales) of the company, which comprises of Ujala, Exo, Henko, Pril, Maxo and Margo reported a GST comparable growth of 21.3% YoY for Q1FY19. Margo and Exo continue to be star of power brands. It has delivered robust growth of 29.5 and 29.6% yoy respectively. Gross Margin Gross margins in Q1 reduced by ~360 bps to 47.4% Y-O-Y on GST adjusted sales. Gross margin is reduced by 1.8% due to regrouping of sales promotion expenses to sales under IND AS 115. Raw material prices have increased due to inflation in commodity prices....

Double Digit Value Growth from Personal Care, Dishwashing and Household Insecticides Segments: Jyothy Laboratories Ltd (JLL) has reported healthy set of volume numbers clocking 18.5% growth in Q1FY19. During this quarter, Revenue from operations of the company improved to Rs. 4053 Mn from Rs. 3618 Mn in Q1FY18 registering 12.0% growth YoY