⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JYOTHYLAB - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 05 Nov 25, 7:43 am
Back to Fundamental ListFundamental Rating: 4.2
📊 Financial Overview
- Profitability: PAT improved YoY, though declined slightly QoQ (-4.95%). EPS stands at ₹9.97.
- Return Metrics: ROE at 29.0% and ROCE at 37.1% are excellent, indicating strong capital efficiency.
- Valuation: P/E of 31.3 is in line with the industry average (31.7), suggesting fair valuation.
- P/B Ratio: With a book value of ₹37.6 and price of ₹315, P/B is ~8.37, reflecting a premium valuation.
- PEG Ratio: 0.81 indicates reasonable growth-adjusted valuation.
- Debt Profile: Debt-to-equity ratio of 0.04 shows excellent financial discipline and low leverage.
- Momentum: RSI at 52.5 and MACD at -0.55 suggest neutral sentiment with potential for upside.
🏢 Business Model & Competitive Edge
- Jyothy Labs operates in FMCG with brands like Ujala, Maxo, Exo, and Margo, offering household and personal care products.
- Strong rural and semi-urban distribution network enhances market reach.
- Brand loyalty and diversified product portfolio provide resilience against market fluctuations.
💡 Entry Zone Recommendation
- Current price is below both DMA 50 (₹322) and DMA 200 (₹352), indicating a mild downtrend.
- Suggested Entry Zone: ₹300–₹310 for accumulation.
- Long-term holding is favorable given strong return metrics and stable business fundamentals.
✅ Positive
- Excellent ROE and ROCE reflect strong operational efficiency.
- Low debt-to-equity ratio supports financial resilience.
- Consistent dividend payout (1.10%) adds income appeal.
⚠️ Limitation
- QoQ PAT decline and MACD suggest short-term weakness.
- High P/B ratio may deter value-focused investors.
- FII holdings declined by 0.55%, indicating cautious foreign sentiment.
📉 Company Negative News
- Stock has corrected ~41% from its 52-week high of ₹535.
- Below-average trading volume may reflect subdued investor interest.
📈 Company Positive News
- Strong brand performance and rural demand support revenue stability.
- DII holdings increased by 0.10%, showing domestic investor confidence.
🏭 Industry
- FMCG sector benefits from consistent demand, especially in essential categories like hygiene and home care.
- Industry P/E of 31.7 supports Jyothy Labs’ current valuation.
🧾 Conclusion
- Jyothy Labs is a fundamentally strong FMCG player with excellent return metrics and low leverage.
- Entry near ₹300–₹310 offers a favorable long-term opportunity.
- Monitor earnings consistency and volume trends for sustained upside.
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