Jyothy Labs Q3FY17: Firstcall are overweight for medium to long term investment
Firstcall India Equity | May 18, 2016, midnight
Jyothy Laboratories Ltd, a FMCG company began as a proprietary concern that manufactured and sold a single product in a single district has grown to become a multi-brand, multi-product company with operations all over the country.
The company achieved a turnover of Rs. 4000.50 million for Q3 FY17 as against Rs. 3882.90 million in the corresponding quarter of the previous year, an increase of 3.03%.
During the 3rd quarter, net profit increased by 6.59% to Rs. 215.10 million from Rs. 201.80 million in the corresponding quarter ending of previous year.
During the quarter, EBIDTA stood at Rs. 532.30 million as against Rs. 537.20 million in the corresponding period of the previous year.
During the quarter, PBT was at Rs. 314.50 million as compared to Rs. 313.50 million in the corresponding period of the previous year.
EPS of the company stood at Rs. 1.18 in Q3 FY17 against Rs. 1.11 in the corresponding quarter of the previous year.
Cash profit at Rs 282 million in Q3 FY 17 vs Rs 298 million in Q3 FY 16.
Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 18% over 2015 to 2018E, respectively.
OUTLOOK AND CONCLUSION
At the current market price of Rs. 344.70, the stock P/E ratio is at 46.09 x FY17E and 39.38 x FY18E respectively.
Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 7.48 and Rs. 8.75 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 9% and 18% over 2015 to 2018E respectively.
On the basis of EV/EBITDA, the stock trades at 22.69 x for FY17E and 20.30 x for FY18E.
Price to Book Value of the stock is expected to be at 6.17 x and 5.33 x for FY17E and FY18E respectively.
Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.
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