JYOTHYLAB - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | JYOTHYLAB | Market Cap | 7,478 Cr. | Current Price | 204 ₹ | High / Low | 365 ₹ |
| Stock P/E | 22.4 | Book Value | 43.3 ₹ | Dividend Yield | 1.72 % | ROCE | 29.6 % |
| ROE | 22.4 % | Face Value | 1.00 ₹ | DMA 50 | 235 ₹ | DMA 200 | 275 ₹ |
| Chg in FII Hold | -0.42 % | Chg in DII Hold | -0.52 % | PAT Qtr | 67.5 Cr. | PAT Prev Qtr | 81.1 Cr. |
| RSI | 27.7 | MACD | -8.89 | Volume | 11,47,125 | Avg Vol 1Wk | 9,84,153 |
| Low price | 196 ₹ | High price | 365 ₹ | PEG Ratio | 1.50 | Debt to equity | 0.03 |
| 52w Index | 4.51 % | Qtr Profit Var | -15.2 % | EPS | 9.07 ₹ | Industry PE | 25.8 |
📊 Financials: Jyothy Labs (JYOTHYLAB) maintains strong fundamentals with ROCE at 29.6% and ROE at 22.4%, reflecting excellent capital efficiency. Debt-to-equity ratio of 0.03 indicates negligible leverage. EPS stands at ₹9.07, supported by PAT of ₹67.5 Cr. (down from ₹81.1 Cr.). Dividend yield at 1.72% provides steady shareholder returns. However, quarterly profit variation (-15.2%) signals short-term earnings pressure.
💹 Valuation: Current P/E of 22.4 is below the industry average of 25.8, suggesting fair valuation. P/B ratio (~4.7, 204/43.3) reflects premium pricing relative to book value. PEG ratio of 1.50 indicates growth is fairly priced, not undervalued. Intrinsic value suggests the stock is moderately valued, with limited margin of safety.
🏢 Business Model & Health: Jyothy Labs operates in FMCG with strong brand presence in household and personal care products. Its competitive advantage lies in diversified product portfolio and efficient capital allocation. Low debt and high ROCE support long-term sustainability, though recent profit decline and reduced institutional participation (FII -0.42%, DII -0.52%) are concerns.
📈 Entry Zone: Technical indicators (RSI 27.7, MACD -8.89, DMA 50 at ₹235, DMA 200 at ₹275) suggest oversold conditions. Accumulation near ₹190–₹210 could be favorable. Long-term investors may hold, given strong fundamentals and sector resilience.
Positive
- ✅ Strong ROCE (29.6%) and ROE (22.4%) highlight superior capital efficiency.
- ✅ Negligible debt-to-equity ratio (0.03) ensures financial stability.
- ✅ Attractive dividend yield (1.72%) supports shareholder returns.
Limitation
- ⚠️ Quarterly profit decline (-15.2%) raises concerns about earnings consistency.
- ⚠️ PEG ratio (1.50) suggests growth is fairly priced, limiting undervaluation.
- ⚠️ Decline in both FII (-0.42%) and DII (-0.52%) holdings reflects reduced institutional confidence.
Company Negative News
- 📉 PAT dropped from ₹81.1 Cr. to ₹67.5 Cr., showing earnings pressure.
- 📉 Institutional investors reduced holdings, signaling cautious sentiment.
Company Positive News
- 📈 Strong ROCE and ROE demonstrate efficient operations.
- 📈 Dividend yield of 1.72% provides consistent shareholder value.
Industry
- 🌐 Industry P/E at 25.8 indicates sector-wide premium valuations.
- 🌐 FMCG sector remains resilient with steady demand for essentials.
Conclusion
🔎 Jyothy Labs is fundamentally strong with excellent capital efficiency, low debt, and attractive dividends. Valuations are fair, with limited undervaluation. Entry near ₹190–₹210 offers a good risk-reward opportunity. Long-term holding is justified, though investors should monitor profit trends and institutional sentiment closely.