Jyothy Labs shares jump 9% after Q2 results; details here

Shares of Jyothy Labs rose sharply in Tuesday's trade, extending their gains for the third consecutive session. The stock surged 8.84 per cent to hit a day high of Rs 402.50. Considering this price, the scrip was just 2.14 per cent away from its 52-week high of Rs 411.30, a level seen on October 3, 2023. That said, the multibagger counter has gained 123.24 per cent from its one-year low of Rs 180.30, hit on March 16 this year.

The FMCG firm reported a 59.1 per cent jump in its consolidated net profit, at Rs 103.98 crore, for the second quarter ending September 30, 2023, as against Rs 65.35 crore in the year-ago period. Consolidated revenue from operations stood at Rs 732.34 crore in Q2 FY24, as compared to Rs 659.2 crore in the corresponding period last year.

Total expenses in the second-quarter were higher at Rs 610.45 crore over Rs 595.26 crore in the same period a year ago.

The company said its fabric care sales increased by 10.6 per cent in Q2 FY24 over the same period last year, while the same for dishwashing segment rose by 10 per cent. Sales of personal care items, including soap and toothpaste, grew 22.3 per cent in the second quarter and that of household insecticides sales grew by 3.4 per cent, it added.

MR Jyothy, Managing Director at Jyothy Labs, said, "The demand across our product portfolio has been stable. The inflationary environment has been a constant pressure on the consumption of FMCG products, however given our business potential, we continue to expand our distribution footprint across India and further strengthen our brands which has resulted in consistent business growth."

The company owns brands like Ujala, Maxo, Exo, Henko, Pril and Margo.

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 69.48. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 47.41 against a price-to-book (P/B) value of 15.41.

The scrip has an analyst target price of Rs 336, Trendlyne data showed, suggesting a potential downside of 16 per cent in a year. It has a one-year beta of 0.74, indicating low volatility on the counter.

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