JYOTHYLAB - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.6

📊 Core Financials & Profitability

Profitability: PAT for the quarter stands at ₹96.8 Cr, slightly down from ₹79.6 Cr, but YoY growth remains stable. EPS of ₹9.97 is solid for a ₹325 stock.

Return Metrics

ROE: 29.0% and ROCE: 37.1% — outstanding, indicating excellent capital efficiency.

Debt Profile: Debt-to-equity at 0.04 — virtually debt-free, offering strong financial resilience.

Dividend Yield: 1.08% — modest, but consistent with shareholder-friendly policies.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 32.4 Fairly valued vs. industry PE of 33.2.

P/B Ratio ~8.65 Expensive relative to book value ₹37.6.

PEG Ratio 0.84 Reasonable — growth is moderately priced.

🔍 Conclusion: Valuation is slightly elevated on book metrics, but justified by strong profitability and low debt.

🧼 Business Model & Competitive Edge

Core Operations: Jyothy Labs is a diversified FMCG player with brands like Ujala, Maxo, Exo, and Margo across fabric care, dishwashing, and personal care.

Strategic Strengths

Strong rural distribution and brand recall.

Net debt-free position with sizeable liquid investments

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Divestment of Bangladesh subsidiary (JKBL) streamlines operations

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Growth Outlook

CARE Ratings reaffirmed AA; Stable for long-term facilities

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Analysts project targets ranging from ₹355 to ₹430, with consensus upside of ~21%

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5-year return of 208.8% and quarterly revenue growth of 8%

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📉 Technicals & Entry Zone

RSI: 37.6 — approaching oversold territory.

MACD: -3.47 — bearish momentum.

DMA Levels: Price below both 50-DMA and 200-DMA — short-term weakness.

📌 Suggested Entry Zone: ₹310–₹325 — near support and technical lows.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, brand strength, and debt-free status support long-term value.

Buy on Dips: Especially if price nears ₹310 or RSI dips below 35.

Monitor: Promotional spend, input cost pressures, and volume growth.

You can explore Jyothy Labs’ CARE Ratings report and analyst targets from Trendlyne for deeper insights. Let me know if you'd like a peer comparison with Godrej Consumer or Dabur next.

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www.careratings.com

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trendlyne.com

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stockpricearchive.com

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