Sharekhan's research report on Jyothy Labs
The company delivered nine consistent quarters of industry-leading volume growth; lower input prices continued to drive margins heling JLL post strong double-digit earnings growth. Distribution expansion in new markets, product launches, market share gains in key categories and expanding into new segments would help JLL to achieve consistent double-digit revenue growth (largely volume-led) in the coming years. Stock has corrected by 15% from its recent high and is trading at 41x/35x its FY2023E and FY2024E earnings.
Outlook
We reiterate our Buy rating on Jyothy Labs Ltd (JLL) with an unchanged PT of Rs. 590. Favourable risk-reward ratio and consistent outperformance compared with peers makers it a preferred pick in the consumer goods space.
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