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JYOTHYLAB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.4
| Stock Code | JYOTHYLAB | Market Cap | 7,873 Cr. | Current Price | 214 ₹ | High / Low | 400 ₹ |
| Stock P/E | 22.8 | Book Value | 39.2 ₹ | Dividend Yield | 1.63 % | ROCE | 37.1 % |
| ROE | 29.0 % | Face Value | 1.00 ₹ | DMA 50 | 249 ₹ | DMA 200 | 297 ₹ |
| Chg in FII Hold | 0.66 % | Chg in DII Hold | -0.94 % | PAT Qtr | 81.1 Cr. | PAT Prev Qtr | 87.8 Cr. |
| RSI | 27.1 | MACD | -9.29 | Volume | 8,56,842 | Avg Vol 1Wk | 9,01,088 |
| Low price | 210 ₹ | High price | 400 ₹ | PEG Ratio | 0.59 | Debt to equity | 0.04 |
| 52w Index | 2.21 % | Qtr Profit Var | -7.20 % | EPS | 9.33 ₹ | Industry PE | 28.1 |
📊 Core Financials
- Revenue & Profitability: PAT declined sequentially (₹87.8 Cr → ₹81.1 Cr), with quarterly profit variation at -7.2%. Despite this, EPS of ₹9.33 remains strong.
- Margins: ROCE at 37.1% and ROE at 29% highlight exceptional efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.04 indicates an almost debt-free balance sheet.
- Cash Flow: Strong operating efficiency ensures healthy cash generation.
💹 Valuation Indicators
- P/E: 22.8, below industry average (28.1), suggesting undervaluation.
- P/B: 5.46 (₹214 / ₹39.2), reflecting premium valuation relative to book value.
- PEG Ratio: 0.59, attractive as growth is undervalued compared to earnings.
- Intrinsic Value: Current price ₹214 is undervalued; entry closer to ₹210–220 is favorable.
🏢 Business Model & Competitive Advantage
- Strong presence in FMCG with diversified product portfolio.
- High ROCE and ROE demonstrate superior capital efficiency.
- Minimal debt enhances resilience and long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹210–220 range offers attractive entry.
- Long-Term Holding: Suitable for investors seeking compounding returns with strong fundamentals.
✅ Positive
- Exceptional ROCE (37.1%) and ROE (29%) highlight strong profitability.
- Debt-to-equity ratio of 0.04 indicates financial strength.
- P/E below industry average suggests undervaluation.
- Dividend yield of 1.63% adds to shareholder returns.
⚠️ Limitation
- Sequential PAT decline (₹87.8 Cr → ₹81.1 Cr).
- High P/B ratio reflects premium valuation.
- Stock trading below DMA 50 (₹249) and DMA 200 (₹297), showing weak momentum.
📉 Company Negative News
- Quarterly profit decline of -7.2%.
- Technical indicators (RSI 27.1, MACD -9.29) suggest oversold and bearish momentum.
- DII holdings decreased by 0.94%, showing reduced domestic institutional confidence.
📈 Company Positive News
- FII holdings increased by 0.66%, reflecting foreign investor interest.
- Strong dividend yield of 1.63% supports investor returns.
- Near debt-free status enhances long-term stability.
🏭 Industry
- Industry P/E at 28.1, higher than company’s P/E (22.8), indicating undervaluation.
- FMCG sector remains resilient with steady demand outlook.
🔎 Conclusion
- Jyothy Labs demonstrates strong fundamentals with superior ROCE and ROE.
- Valuation is attractive with P/E below industry average, though P/B remains high.
- Entry zone between ₹210–220 is favorable for long-term investors.
- Overall, a fundamentally strong company with excellent efficiency, suitable for compounding returns despite short-term profit volatility.