Jyothy Labs’ stock jumped over 7% after strong Q1 results, featuring 7-11% volume growth, an 18% EBITDA margin, and a 17% increase in net profits. The stock has risen over 70% since our August 2023 “accumulate” call. Despite its impressive performance, future earnings growth is expected to slow, and margins may peak. Investors should consider booking partial profits due to these factors. Jyothy’s growth strategy is driving strong results in fabric care and dishwash segments, though household insecticides and personal care segments are underperforming.

Jyothy Labs is Up 80 per cent in the Last Year. What Should You Do With the Stock Now ?

The brokerage maintains Jyothy Labs as a high conviction Buy idea, with a target price of Rs 600,

Jyothy Labs Q1 Results Review - Firing On All Cylinders: HDFC Securities

Fast Moving Consumer Goods (FMCG) firm Jyothy Labs saw a 5.2 per cent increase in its net profit at ₹101 crore for the quarter that ended in June

Jyothy Labs Q1 results: Net profit up 5.2% to ₹101 crore

Jyothy Labs jumped 6.47% to Rs 540.80 after the household products maker reported 5.65% rise in consolidated net profit to Rs 101.73 crore on 7.96% increase in revenue from operations to Rs 741.81 crore in Q1 FY25 over in Q1 FY24.

Jyothy Labs surges as PAT climbs to Rs 102 crore in Q1

Jyothy Labs consolidated net profit rises 5.65% in the June 2024 quarter

Upcoming results: Tech Mahindra, Nestle India, Motilal Oswal Financial Services, Aavas Financiers, Adani Green Energy, Ashok Leyland, AU Small Finance Bank, Canara Bank, Chalet Hotels, Chennai Petrochem Corp, Cyient, DLF, Glenmark Life Sciences, Go Digital General Insurance, Home First Finance Company India, Jupiter Wagons, Jyothy Labs, Laurus Labs, MGL, Mphasis, PNB Housing Finance, Praj Industries, The Ramco Cements.

Stock alert: Axis Bank, Larsen & Toubro, SBI Life Insurance Company, J K Paper, Bikaji Foods, Oracle Financal Services Software

Sandip Sabharwal stresses tax relief to revive consumption, essential for GDP growth, and warns of a possible market sell-off next week or next month. Aditya Birlas competition may drop Asian Paints valuations. Infosys shows cautious optimism. Paytms future remains uncertain. Gains for Dabur and Hindustan Unilever spotlighted, alongside TTML, Godrej Consumer, and Jyothy Labs in Budget and FMCG trends with rural exposure plays.

Be cautious, wall of money driving markets; global market-related sell-off could come: Sandip Sabharwal

There are several instances of FMCG companies entering service business that didn’t work for them on expected lines. In 2009, Jyothy Labs launched a laundry business through a chain called Fabricspa, with an investment of Rs 40 crore. Over the years, the business grew at a slower pace compared to the rest of the business. It contributed 2% of the total revenue of Jyothy Labs in FY24.

Services business a hard sell for FMCG companies focused on products

Fabric care growing ahead of overall FMCG growth

Jyothy Labs - Disruptive Innovation: HDFC Securities

We call Jyothy Labs sarva gunn sampann—as it is completely versatile and has enough weapons in its armoury to combat any challenge

Jyothy Labs - Cruising Ahead: HDFC Securities

Calls Jyothy Labs sarva gunn sampann – fully versatile and with enough weapons in its armory to combat any challenge.

Jyothy Labs - Sarva Gunn Sampann; HDFC Securities Initiates Coverage With A Buy

Hasn't fared well - amongst the low performers

Performance

Seems to be overvalued vs the market average

Valuation

Lagging behind the market in financials growth

Growth

Showing good signs of profitability & efficiency

Profitability

The stock is overpriced but is not in the overbought zone

Current price is more than the intrinsic value

Fundamentals

Good time to consider, stock is not in the overbought zone

Technicals

Entry point

Promoter pledged holding

Unsolicited messages

Default probability

Red flags

Jyothy Laboratories Limited is a multi-brand, multi-product FMCG company. It is principally engaged in manufacturing and marketing of fabric whiteners, soaps, detergents, mosquito repellents, scrubber, bodycare and incense sticks.

Jyothy Labs Ltd