ShareTipsInfo.com presents research on Jyothy Laboratories:
Company overview:
Jyothy Laboratories was established in the year 1983 by M P Ramachandran. From very humble start in 1983 having presence only in the state of Kerala it now has pan India presence. The company got started by corpus of just Rs40000 and today it has a turnover of in excess of Rs400 crore.
Vision:
Develop innovative brands, tap high growth categories, reach untapped markets and explore untapped segments to meet the day-to-day requirements of every Indian household.
Mission:
Provide brands that denote superior quality, to touch and positively impact the daily lives of consumers. To ensure that our brands, business operations and corporate policies translate the core philosophy of offering value for the money spent to experience our products. Ensure that our people, processes and products reflect the ideals of integrity, ethics and professionalism.
Product line:
- FABRIC CARE: Ujala Supreme, Ujala Washing Powder, Stiff & Shine
- HOUSEHOLD INSECTICIDE: axo Cyclothrin Coil, Maxo Cyclothrin Liquid, Maxo Aerosol
- UTENSIL CLEANER: Exo Dish Wash Bar, Exo Dish Wash Liquid
- FRAGRANCE: Maya
- PERSONAL CARE: Jeeva Natural
Key investment rational:
- Company is debt free.
- At the time of fall in the market FMCG sector gives fairly good return.
- Falling crude oil which is major input will increase the operating profit margin and hence increase in bottom line.
- Good brand recognition of Ujjala.
- Pan India presence.
- Company stock is trading below its book value.
SHAREHOLDING PATTERN:
|
|
|
NO. OF SHARES |
% OF TOTAL |
|
PROMOTER |
50516942 |
|
69.61% |
|
|
INSTITUTION |
17494788 |
|
24.11% |
|
|
GENERAL PUBLIC |
4557070 |
|
6.28% |
|
|
GRAND TOTAL |
72568800 |
|
100% |
|
FINANCIAL:
|
|
|
31/03/07 |
% CHANGE |
31/03/08 |
|
TOTAL INCOME |
382.95 |
0.06% |
|
383.21 |
|
EXPENDITURE |
-318.02 |
|
|
-309.19 |
|
OPERATING INCOME |
64.93 |
14% |
|
74.02 |
|
DEPRECIATION |
-5.77 |
|
|
-7.41 |
|
PBIT |
|
59.16 |
|
|
66.61 |
|
INTEREST |
|
-0.18 |
|
|
-0.68 |
|
PBT |
|
58.98 |
|
|
65.93 |
|
TAX |
|
-7.37 |
|
|
-15.22 |
|
PAT |
|
51.61 |
-1.75% |
|
50.71 |
Key Highlights:
- Total Income almost constant over the period of comparison.
- Operating Profit increased by 14%.
- Net profit decreased by 1.75%.
Ratios:
|
|
|
|
|
|
|
|
31/03/07 |
31/03/08 |
|
EPS |
|
7.118621 |
6.989662 |
|
OPM |
|
16.95522 |
19.31578 |
|
NPM |
|
13.47696 |
13.23295 |
|
INTEREST COVER |
328.6667 |
97.95588 |
Key Highlights:
- EPS remained more or less same at Rs7.
- Operating Profit Margin (OPM) moved up 16.9% to 19.3%.
- Net Profit Margin (NPM) remained same at 13%.
- Interest Coverage ratio declined from 328 to 97. This drastic decline is due to lower base effect. Still we can say that the company is debt free company.
COMPARISION OF Q3FY2009 WITH Q3FY2008:
|
|
|
31/12/07 |
%CHANGE |
31/12/08 |
|
TOTAL INCOME |
100.54 |
21.20% |
|
121.86 |
|
EXPENDITURE |
-82.66 |
|
|
-103.2 |
|
OPERATING PROFIT |
17.88 |
4.36% |
|
18.66 |
|
DEPRECIATION |
-2.04 |
|
|
-2.26 |
|
PBIT |
|
15.84 |
|
|
16.4 |
|
INTEREST |
|
-0.03 |
|
|
-0.1 |
|
PBT |
|
15.81 |
|
|
16.3 |
|
TAX |
|
-2.09 |
|
|
-2.31 |
|
EXTRA ORD ITEM |
6.33 |
|
|
0 |
|
PAT |
|
20.05 |
-30% |
|
13.99 |
Key Highlights:
- Total Income grew by 21.2% in Q3 of FY2009 as compared to Q3 of FY2008.
- In the same period Operating Income moved up by just 4.36%. Higher crude oil price during the Crude oil price during the Q3 FY2009 is the main reason for lower increase in operating income.
- Net profit decreased by 30%. This decline could be attributed to the addition of extraordinary income in Q3FY2008.
Valuation:
At cmp Rs64.9 it is trading 9X to trailing twelve month earning. While the FMCG industry average of 12x. The company fair value come to Rs84. So at this price we can have upside of 30%.
Conclusion:
Risk averse investor could take position on this counter as there is limite downside to the stock. The investment horizon is 10 to 12 months
