The Investor Ak research report.
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Jyothy Laboratories Limited - A midcap worth buying?
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• The Indian FMCG sector is the 4th largest sector in the economy and is expected to grow at a CAGR of 14% over the next 5 years (despite covid disruptions).
• Per capita FMCG consumption in India is amongst the lowest in the world,giving the industry a big headroom for growth.
The Company:
• Jyothy Labs Ltd. is a multi-brand, multi-product FMCG company, founded by Mr. MP Ramachandran in 1983.
• Over years, Jyothy has evolved from a single product
company into a multi-product leading FMCG player with
a pan-India presence and several household brands.
• Jyothy operates mainly in the fabric care (Ujala, Henko) (41%), dishwash (Exo, Pril) (33%), personal care (Fa, Margo) (11%) and household insecticides (Maxo) (11%) segments.
• It's flagship brand Ujala is the market leader in Fabric whitener space while its Exo and Pril brands together enjoy the second position in the dishwashing bar and liquid category.
• Also, JLL had several product launches in FY20 - two of them were in response to the need for hygiene products with the outbreak of COVID-19.
Have a look at the snapshot mentioned below:
• It's wide presence across these relatively non-discretionary product categories, on the back of the resurgent economy, and enhanced rural consumption
with a wide product portfolio that caters to the day-to-day needs of millions of Indian consumers & with the company’s aggressive marketing initiatives, revenues of the company are expected to grow at decent rate.
At the CMP of 147, the stock is trading at PE of 31.9 times to its FY20 EPS of 4.6 against the Avg. industry PE of 64.0.
Thus, The stock’s relative under-performance as compared to its industry peers, looks a good opportunity for investors.
I'm +ve on this stock,
Your thoughts are welcome, Comment down! 🙂
@iInvestorAk
- Investor Ak
(NOT AN INVESTMENT ADVICE)
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