Jyothy Laboratories price target is Rs84
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
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| Latest Indian Stock Market Reports |
Indian stock market daily morning report (February 09, 2010, Tuesday)
The Sensex bounced back from the early slide yesterday, closing with marginal gains. The Government’s forecast that the economy would grow by 7.2% this fiscal year, reinforcing expectations of strong industrial growth, along with positive European markets helped markets recover. Most of the buying was seen in capital goods, banking and real estate stocks, whereas metal and auto stocks witnessed selling pressure. Market breadth was marginally weak at around 0.92x. FIIs sold equities worth Rs9.35bn, while domestic institutions bought equities of Rs3.8bn.
Indian stock market and companies daily report (February 09, 2010, Tuesday)
The benchmark indices logged marginal gains after swinging sharply in highly volatile trade. IT stocks played the lead role in the recovery; however, metal pivotals remained subdued, as metal prices fell on the LMEX. Telecom stocks advanced on bargain hunting. Rate-sensitive banking shares recovered from the day's low, while auto stocks were mixed. The BSE Sensex and the NSE Nifty rose by a marginal 0.1% each. The BSE Mid-cap and Small-cap indices were down by 0.1% each. Among the front-liners, Bharti Airtel, RCOM, ONGC, HLL and M&M were up by 2-3%, while Tata Steel, Hindalco, Wipro, Jaiprakash Associates and NTPC were down by 1-4%. In the mid-cap segment Chambal Fertilisers, Nagarjuna Fertilisers, Core Projects, Kansai Nerolac, Procter & Gamble were up by 5-7%, while Indraprashtha Gas, Gujarat NRE Coke, Torrent Pharma, Spice Communications and REI Agro, were down by 4-9%
Indian stock market daily morning report (February 08, 2010, Monday)
The Sensex continued its downward trend last Friday, closing below the 16,000 mark on concern over Europe's sovereign debt, indications of weak US jobs data and a fall in commodity and energy prices. Persistent selling pressure was seen across the board and all sectoral indices closed negative with real estate, metals and capital goods stocks were the worst affected. Auto stock also declined after a government-appointed panel recommended additional duty on diesel-powered vehicles. Indian markets were open for a couple of hours last Saturday, for the purpose of software testing. Market breadth was extreme weak at around 0.21x as investors sold large cap stocks. FIIs sold equities worth Rs17.2bn, while domestic institutions bought equities of Rs11.68bn.
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