Sharekhan's research report on Jyothy Laboratories
Q3FY21 was yet another strong quarter for Jyothy Labs (JLL) with consolidated revenues growing by 13.3%yoy to Rs. 476.6 crore (led by a 15% volume growth) and OPM expanding by 100 bps to 16.8%; PAT growth stood at 18.5%. Personal care and dishwashing products clocked strong growth of 48% and 21% respectively, driving Q3 performance house hold insecticide (HI) segment too grew by ~10%. Higher demand for dishwashing and personal care products and expected improvement in growth of fabric care segment will help JLL post double-digit growth in coming quarters. OPM to sustain at 16-17% in the near to medium term..
We raise our earnings estimates for FY2022/23 by 7-9% to factor in better-than-expected growth in personal care products and expected recovery in fabric care category. Stock trades at discounted valuation of 18.6x its FY2023E EPS; maintain Buy with revised PT of Rs. 188.
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