Feb'25 View on Jyothy Labs Ltd

Jyothy Labs Limited was founded in 1983 by Mr. M. P. Ramachandran in Thrissur, Kerala. JLL is renowned brand in the domestic FMCG industry. It has a diversified product portfolio spanning four major categories of fabric care, dishwashing, household insecticides (HI) and personal care and an established market position in the post-wash (under Ujala brand) and the dishwashing segments (under Pril and Exo brands). After making a high near 600, the stock is currently trading at 340 levels and after decent correction looks to scale past 450 levels on back of following • Volume growth improved to 8% (KIE: 5%) from 3% in Q2. • Fabric care continued to steal the show, with near-Double digit growth. • Gross Margins was flat yoy (down 40 bps qoq) to 49.7% (KIE: 49.5%). • JYL has launched two new products in January 2025. • JYL reported 8% volume growth, aided by grammage increases/promotion. • Stay cautious due to weak consumption trends and competitive headwind. • We expect earnings to grow by 6.1% in FY26E & grow by 8.9% in FY27E. • Stock is currently trading at valuation of 35.0x P/E FY27E EPS.