Jyothy Labs Q1 Results Review - Firing On All Cylinders: HDFC Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities.Jyothy Laboratories Ltd.'s Q1 FY25 results came ahead of our estimates, owing to strong volume growth, broad-based performance across segments (ex-household insecticides) and higher-than-expected gross margin expansion (up 340bps YoY). Domestic volume growth of 11% versus consensus expectation of 7-8% is commendable, given the challenging macro environment. We maintain Jyothy Labs as a high conviction Buy idea, with a target price of Rs 600, (42 times June-26 EPS), as we upgrade our target multiple from 40x to 42x, given it is one of the few FMCG companies structurally poised for high single-digit volume growth, mid-teen Ebitda growth, and high-teen net income growth. We pencil in revenue/Ebitda/PAT CAGRs of 12/15/17% for FY24-27, the second-highest amongst our coverage of consumer staple companies. .Our confidence stems from several factors:Jyothy Labs operates in categories with a higher total addressable market and, despite being a challenger brand, is capturing market share by making its product portfolio comprehensive, launching low unit packs, communicating product superiority versus the competition, and providing value-for-money offerings;under its new leadership, Jyothy Labs has mastered the fundamentals of FMCG with initiatives such as- increasing the distribution network while improving productivity; shifting marketing spend from Below the Line to Above the Line; and focusing on low unit packs across the product portfolio to align with its objectives; competent key management personnel are ensuring the smooth execution of this strategy, a significant improvement over the previous management, which was more focused on M&A transactions..Click on the attachment to read the full report:.Nestle India Q1 Results Review - Revenue Growth A Laggard: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Jyothy Labs Q1 Results Review - Firing On All Cylinders: HDFC Securities

The brokerage maintains Jyothy Labs as a high conviction Buy idea, with a target price of Rs 600,

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Jyothy Labs Q1 Results Review - Firing On All Cylinders: HDFC Securities

The brokerage maintains Jyothy Labs as a high conviction Buy idea, with a target price of Rs 600,

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