Hem Securities Placed "Buy" On FMCG Stock With Attractive TP, Likely To Give Up To 24% Return

Hem Securities has assigned a "Buy" on the stock of Jyothy Labs Ltd. with a target price of Rs 225 apiece. If you buy the stock at the current market price, it can fetch up to 24% return. Jyothy Labs is a leading FMCG player with a pan-India presence and several household brands. It is a midcap stock having a market capitalisation of Rs 6,809.88 crore.

Stock's Current Market Price, 52-Week High/Low, Returns

The stock of Jyothy Labs is Rs 185.50 apiece, down 1.49% from the previous close. Its 52 week low is Rs 133.80 apiece and 52 week high at Rs 222.70 apiece, respectively. It has fallen 2.95% in 1 month, and 6.99% in 3 months, respectively. In 1 year it gained 27.21%. It has given 107.49% positive return in 3 years. It has given 2.37% positive return in 5 years.

Result Overview

• Jyothy Labs Ltd. Q3FY23 consolidated revenues came in at ₹613 Cr, up 13.6% YoY and down 6.9% QoQ.
• Op EBIT for Q3FY23 stood at ₹84 Cr, up 37.7% YoY and up 5% QoQ.
• Op EBIT margins for Q3FY23 came at 14%.
• PAT for Q3FY23 stood at ₹67 Cr, up 76.31% YoY and up 3.07% QoQ

Valuation and Outlook

According to HEM Securities, Company posted good results in past few quarters despite of input price inflation and slowdown in volume growth. Falling crude prices will help company to post better margins and management is also trying to increase its distribution network of key brands in newer markets to improve topline. "We initiate a "BUY" rating on the stock and value the stock at 25x FY24E earnings to arrive at the target of ₹225," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Hem Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.