Buy Jyothy Labs, target price Rs 250: ICICI Securities

ICICI Securities has buy call on Jyothy Labs with a target price of Rs 250. The current market price of Jyothy Labs is Rs 203.55.


Jyothy Labs, incorporated in the year 1992, is a Mid Cap company (having a market cap of Rs 7485.55 Crore) operating in FMCG sector.

Jyothy Labs key Products/Revenue Segments include Personal Care and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 627.93 Crore, down -5.51 % from last quarter Total Income of Rs 664.54 Crore and up 15.71 % from last year same quarter Total Income of Rs 542.66 Crore. Company has reported net profit after tax of Rs 67.39 Crore in latest quarter.

The company’s top management includes Mr.M P Ramachandran, Mr.R Lakshminarayanan, Ms.M R Jyothy, Ms.M R Deepthi, Mr.Aditya Sapru, Mr.Nilesh Mehta, Ms.Bhumika Batra. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 37 Crore shares outstanding.

Investment Rationale
Jyothy Labs has gained market shares across most of its categories over last few years. The brokerage likes the management’s strategy of prioritising market share gains volume growth over short-term margins which is impacted due to unprecedented input cost pressure. The two (larger) segments of dishwashing and fabric care continue to perform well and present good visibility in the medium term. Amongst the value stocks, Jyothy continues to be ICICI Securities' top pick.