Hold Jyothy Laboratories; target of Rs 180: ICICI Direct

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

ICICI Direct's research report on Jyothy Laboratories

Jyothy Labs’ (JLL) revenues during Q1FY20 grew 2.3% YoY to Rs 411.6 crore impacted by slower growth in the dishwashing segment and de-growth in household insecticides (HI) segment. Volume growth was slower at 5.6% due to high base and tapering growth in rural regions. However, personal care segment YoY growth of 13% was impressive whereas fabric care grew 5.4% for the quarter. EBITDA margins expanded 144 bps to 15.9% driven by 72 bps saving in gross margins and 143 bps saving in other overheads to sales. Net profit increased 10.9% to Rs 35.9 crore impacted by one-off exceptional expense of Rs 3.8 crore related to a change in brand identity. Adjusting for exceptional item, net profit increased 20.9% YoY.

Outlook

Moreover, lower presence in high growing north India market also put company in relatively disadvantageous position. We downgrade our recommendation on the stock from BUY to HOLD with a revised target price of Rs 180 per share.

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.

Read More