ICICI Securities's research report on Jyothy Labs
JYL’s Q2FY26 performance was impacted by GST-led disruption and pricing/grammage adjustments (value/volume growth of 0.4%/2.8% YoY). Fabric care (high-single-digit volume growth) and Dishwash (3.4% volume growth) segments delivered encouraging trends, while Personal care and Household insecticides remained subdued amid category headwinds. We expect a recovery ahead, driven by new product launches, pack recalibration, pricing and RTM (route to market) initiatives. Interestingly, management remains confident of achieving double-digit volume growth by Q4FY26. In our view, profitability recovery could be gradual given volatile input costs and sustained brand investments. Maintain BUY.
Outlook
We maintain BUY with DCF-based revised target price of INR 400 (INR 430 previously). At our target price, the stock may trade at 33x P/E multiple for Sep’27E. Key downside risks: Higher competitive pressure and significant input cost inflation impacting margins.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
