Sharekhan Recommends Mid Cap FMCG Stock To Buy For Gain, 300% Dividend Income

Sharekhan has recommended investors to buy mid cap FMCG sector stock, Jyothy Labs Ltd with target price of Rs 240 apiece. If you buy Jyothy Labs Ltd share now, you can fetch potential return of 24% along with 300% dividend income. The company on May 3, 2023 declared a dividend of Rs 3 per equity share of Re 1 each i.e. 300% dividend payout for the FY 2022-23. The stock offered 31% return in last 1-year. The stock declined 13% from 52-week high price. Check details below:

Jyothy Labs Ltd Declared Dividend: According to the BSE filing of the company, ""Recommended a Dividend of Rs. 3/- (Rupees Three only) per equity share of Re.1/- each for the financial year 2022-23, which if approved by the shareholders of the Company at the ensuing Annual General Meeting, will be paid/ dispatched on or after July 27, 2023."

Jyothy Labs Ltd Stock Performance & Return: Current market price of Jyothy Labs is Rs 194.95 per share with intraday gain of 0.54% on BSE. The stock's 52-week high price is Rs 222.90 per share and 52-week low price is Rs 142.00 per share, respectively. The company has a market capitalisation of Rs 7,158.73 crore. Shares of Jyothy Lab jumped 31% in last 1-year, 37% in last 2-years, and 78% in last 3-years. Shares declined 7% in last 3-months.

Valuation: According to Sharekhan, "We maintain our Buy recommendation on Jyothy Labs (JLL) with a PT of Rs. 240. The stock has corrected by 18% from its recent high and is trading at an attractive valuation of 22x/18x its FY2023E/24E earnings." Jyothy Labs (JLL) has been a consistent performer in the consumer goods pack with double-digit revenue growth for eight consecutive quarters and sequential improvement in the OPM for past two quarters.

About: JLL has evolved from being a promoter-driven, south-centric, single-product company to a professionally managed, multi-brand, multi-product company with pan-India operations and a turnover of over Rs. 2,000 crores. JLL is present in key categories such as fabric care, dish wash, HI, and personal care products. JLL's power brands include Ujala, Henko, Exo, Maxo, Margo, and Pril. The company's flagship brand, Ujala has remained at the top of the fabric whitener category since its launch, with an ~80% market share.

Disclaimer:The stock has been picked from the brokerage report of Sharekhan. 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 check with certified experts before taking any investment decision.