Neutral Jyothy Laboratories; target of Rs 190: Motilal Oswal

Motilal Oswal's research report on Jyothy Laboratories

JYL reported an in line operating performance in 2QFY23. While standalone sales growth was 11.8%, overall volume growth was low ~1%. Three-year EBITDA CAGR continues to be in low single digits and is likely to remain at a similar rate over the next couple of quarters. We maintain our Neutral rating on the stock.

Outlook

We assign a 17x EV/EBITDA target multiple to our Sep’24E EBITDA, resulting in a TP of INR190. We maintain our Neutral rating.