Jyothy Labs - Disruptive Innovation: HDFC Securities

HDFC Securities Institutional Equities

Jyothy Laboratories Ltd.s’ fabric-care portfolio has seen ~14% revenue compound annual growth rate over FY20-24 and our checks show that similar momentum should continue over the medium term, as its detergent portfolio, like its ad campaign, is sarva gunn sampann— fully versatile and with enough weapons in its armoury to combat any challenge.

Our discussions with industry participants suggest that Jyothy Labs has the following levers and tailwinds in its favour:

1. a comprehensive product portfolio;

2. a shift towards premiumisation;

3. distribution expansion initiatives;

4. scope for margin expansion, as it reaps the benefits of operating leverage, coupled with a pan-India manufacturing footprint (23 plants), given that value-end detergents are highly freight-intensive.

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