Jyothy Labs Q3FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | May 18, 2016, midnight


SYNOPSIS

  • 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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