Sharekhan Picks Mid Cap FMCG Stock Trading At Attractive Valuation, Buy

Sharekhan has recommended investors to buy mid cap FMCG stock, Jyothy Labs Ltd with a target price of Rs 240 apiece. According to the analyst, "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." if you buy Jyothy Labs, you can get potential 30% return. Check details below:

Jyothy Labs Ltd Stock Performance & Return: Current market price of Jyothy Labs Ltd is Rs 185.55 apiece on BSE. Its 52-week high is Rs 222.90 apiece and 52-week low is Rs 133.90 apiece, respectively. Its market capitalisation is Rs 6,813.56. The stock declined 10% in last 3-months, gave return of 26% in last 1-year, and 87% return in last 3-years.

Valuation: According to Sharekhan, "Improving cash flows, focus on achieving double-digit volume growth, and attractive valuations make it a good mid-cap pick in the consumer goods space. We maintain our Buy recommendation on the stock with an unchanged price target (PT) of Rs. 240 over the next 12 months."

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.

Key Risks: Any late recovery in the HI category or market share loss in some of the key categories would act as a key risk to our earnings estimates.

About Jyothy Labs Ltd: 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 approximately 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.