Buy Jyothy Laboratories; target of Rs 395: Sharekhan

Sharekhan's research report on Jyothy Laboratories

Jyothy Labs Limited’s (JLL’s) Q4FY25 numbers were muted with revenue and PAT growing by just 1% and 2% y-o-y, respectively. Volumes grew 4% y-o-y. JLL expects volume growth to be in mid-single digits in H1FY26, while it expects volume growth to improve to double digits in H2FY26. Company maintained its OPM guidance at 16-17% for FY26. H1FY26 would have slightly higher margin pressure, while the situation is expected to improve from H2FY26.

Outlook

Stock has corrected by 20% since its recent highs and trades at 31x/28x its FY26E/FY27E EPS, respectively. We maintain Buy with a revised PT of Rs. 395.