Sharekhan's research report on Jyothy Laboratories
For Q1FY2020, revenue grew by just 2.3% (volume growth at 5.6%), while OPM expanded by 144 bps to 15.9% due to lower other expenses. Household insecticides (HI) category continues to underperform; dishwashing category was flat while fabric care category grew by just 5%. A revival in growth for HI will take time as category has been affected by competition from illegal incense sticks and an unfavorable weather.
Outlook
We broadly maintain earnings estimates; maintain Hold rating with an unchanged PT of Rs. 180.
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