JYOTHYLAB - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Here’s a comprehensive breakdown of Jyothy Labs (JYOTHYLAB) — a well-known FMCG player operating in the personal care and fabric care space 🧴🧼

📊 Core Financials & Return Metrics

ROCE: 25.1% and ROE: 19.4% — exceptionally strong returns, pointing to efficient capital use.

Debt-to-equity: 0.03 — virtually debt-free; high financial stability.

Dividend Yield: 1.05% — modest but steady, suggesting shareholder value orientation.

PAT Qtr: ₹79.3 Cr vs ₹87.4 Cr (-9.3%) — slight decline this quarter, worth monitoring.

💡 EPS: ₹10.1 — decent earnings per share for its price range; supported by strong operating metrics.

💰 Valuation Indicators

Metric Value Interpretation

P/E 32.7 Slightly above industry average (23.5)

P/B ~5.95 Premium valuation; confidence in intangibles

PEG 0.98 ✅ Fairly priced relative to expected growth

📌 Verdict: Jyothy Labs is fairly valued, with a PEG ratio near 1 indicating balanced pricing vis-à-vis earnings growth.

🧠 Business Model & Competitive Edge

Operates across key consumer verticals: fabric care (Ujala), home care (Maxo), personal care (Margo, Neem).

Strong rural footprint and brand recall — caters to price-sensitive segments.

Faces competition from HUL, Emami, Dabur, but maintains a differentiated niche and cost-efficiency.

Margins are supported by low leverage and focused product strategy.

🔍 Change in Institutional Holding: Declining DII/FII (-0.47%, -0.27%) suggests recent caution, possibly profit-booking after prior highs.

📉 Technical Levels & Entry Zone

Current Price: ₹332

Below both DMA-50 ₹344 and DMA-200 ₹377 — technical softness.

RSI: 37.3 — approaching oversold zone, potential bounce.

MACD: -1.98 — momentum remains weak.

🎯 Suggested Accumulation Zone: ₹315–₹330 🔒 Support: ~₹305–₹310 🛑 Resistance: ₹355–₹360

⏳ Long-Term Holding View

Jyothy Labs is an established FMCG with low debt, high returns, and a resilient business model.

Ideal for stable long-term growth portfolios, especially those looking for rural consumer exposure.

Investors should watch for margin consistency and new product expansion.

Want to explore how it compares with Emami, Godrej Consumer, or Dabur for better sector clarity? Might uncover some interesting thematic picks 🌾📈.

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