Jyothy Laboratories a safe bet: Irani

Jyothy Laboratories a safe bet, says Mehraboon Irani, VP-PMS, Centrum Broking.

Irani told CNBC-TV18, "Jyothy Laboratories main project Ujala has a 73.5% market share and deserves to have that market share considering the advantage that the product has. It also has a dishwasher product called Exo and nation wide launch has just taken place. At one rupee face value share we expect the company to have a net profit of around Rs 73 crore in the current year of equity if around Rs 7.3 crore which works an EPS of around Rs 10 and next year we expect this company to do well and post an EPS something between Rs 14-15. At the present price we find the stock going dirt cheap especially at a time when FMCGs are back in focus and people are looking at them not only as a defensive but something in which people are learning to make money and quite a few stocks have given good returns. I think it is the safest bet in terms of valuations.”

Disclosure: The above stock would be in my portfolio or in my clients’ portfolios.