Live Webinar on "How to Invest successfully to reach goals without losing sleep" Sign up for Live Webinar
investing succesffuly to reach your goals investing succesffuly to reach your goals
X

Jyothy Labs Ltd Stock Analysis

Mid Cap
Evaluated by 3708 users | BSE: 532926 | NSE: JYOTHYLAB |
Household & Personal Products

Jyothy Laboratories Limited began its journey in 1983 with a single product – Ujala Supreme – in the fabric whitener category. The product was woven around a unique proposition. An iconic jingle ‘Aaya naya Ujala, chaar boondo waala’...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Jyothy Labs Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 6.24%5.5%9.37%9.88%8.56%16.86%11.74%14%12.69%15.32%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9131,1071,3241,5151,5931,6831,6721,8141,7111,9092,002
Y-o-Y Gr. Rt.-21.2%19.6%14.4%5.1%5.7%-0.6%8.4%-5.7%11.6%-
Adjusted EPS (Rs.) 1.310.622.223.311.995.714.335.544.675.875.12
Y-o-Y Gr. Rt.--52.7%258.1%49.1%-39.9%186.9%-24.2%27.9%-15.7%25.7%-
Book Value per Share (Rs.) 18.9918.0820.2820.7423.7429.0430.5936.1233.4638.940.00
Adjusted Net Profit 42.219.880.512072.3208157203172216188
Net Op. Cash Flow (Rs. Cr.) 12527.8130166192163242302171402-
Debt to Cash Flow from Ops 4.5522.654.113.422.353.052.250.931.650.29-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Jyothy Labs Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.5%3.7%4.5%11.6%
Adjusted EPS 18.1%24.2%10.7%25.7%
Book Value per Share 8.310.48.316.3
Share Price 11.1% 3.4% -8.1% 22.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 6.793.1711.7215.838.620.8514.0916.4713.4316.2312.98
Operating Profit Margin (%) 9.437.9411.7610.8514.0115.1815.415.5314.6916.2315.05
Net Profit Margin (%) 3.941.476.067.94.2712.098.9810.89.5710.839.39
Debt to Equity 0.931.080.730.760.520.470.490.210.230.08-
Working Capital Days 107114128130136142154130144130-
Cash Conversion Cycle 28212722172131192420-
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 62.89%
Institutions 28.46%
Non-Institutions 8.65%
Pledged *23.7726.6624.968.538.538.530.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Jyothy Labs Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Jyothy Labs Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Jyothy Labs Ltd's performance infers:

Jyothy Labs Ltd earnings have grown by 24.2%, whereas share price has appreciated 3.4% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Jyothy Labs Ltd share prices over the last 10 years. Here is what we found out:

Jyothy Labs Ltd share price has appreciated 11.8% annually over the past ten years.

Jyothy Laboratories Limited began its journey in 1983 with a single product – Ujala Supreme – in the fabric whitener category. The product was woven around a unique proposition. An iconic jingle ‘Aaya naya Ujala, chaar boondo waala’ was created to market this product. The message to the consumer was that now spotlessly clean clothes were possible by using only four drops of Ujala Supreme. Over the years, the company invested in market

Jyothy Laboratories Limited began its journey in 1983 with a single product – Ujala Supreme – in the fabric whitener category. The product was woven around a unique proposition. An iconic jingle ‘Aaya naya Ujala, chaar boondo waala’ was created to market this product. The message to the consumer was that now spotlessly clean clothes were possible by using only four drops of Ujala Supreme. Over the years, the company invested in market and product research to diversify into various household product categories such as insecticides, fabric stiffeners and soap, leading to the launch of successful products like Ujala, Maxo and Exo.

A turning point was reached in 2011, with the company’s acquisition of a controlling stake in Henkel India, the local arm of the German FMCG giant Henkel AG & Co. This business association widened the company’s opportunity landscape as consumer business segments of Jyothy Laboratories and this global giant were clubbed. The company’s pan India presence covers many manufacturing facilities and two research and development centres. Most of the company’s plants are proximate to major consumption centres and tax-friendly zones.

Business area of the company

The company is in the business of meeting the everyday needs of consumers by creating well-packaged and technologically advanced products in four segments of the fast-moving consumer goods industry. It has offerings in fabric care, dish wash, household insecticide and personal care. Its brands are household names such as Ujala, Henko, Exo, Pril, Maxo and Margo. It is also in the business of laundry services.

Key product categories

  • Fabric care
  • Dish wash
  • Household insecticides
  • Personal care
  • Laundry services

Awards

  • 2016-17: DQ Vertical Warrior Award for Innovative use of Technology in FMCG Vertical.
  • 2016-17: IDC Insights Award for Excellence in Operations 2016.
  • 2016-17: At Jyothy Laboratories, the year 2016-17 was eventful during which it was recognised for a new product launch and for innovation in IT.
  • 2017-18: Janam Global Excellence Award 2018 presented by Janam TV.
  • 2017-18: Business Reliability Award 2017 presented by Reporter Channel.
  • 2017-18: Malayalee Business Achiever Award 2018 presented by Pegasus Group.
  • 2017-18: IDC Insights Awards 2017 for excellence in operation.
  • 2018-19: Jyothy Labs was conferred with commendation certificate by IMC Ramakrishna Bajaj National Quality Award in the ‘Manufacturing Category’.
  • 2019-20: Jyothy Labs was acknowledged amongst the Top Organisations with Innovative HR Practices at the 18th Edition Asia Pacific HRM Congress.

Milestones

  • 1983: Jyothy Laboratories was started by M P Ramachandran as a proprietary concern in Kerala. Ujala was launched.
  • 1984: Ujala was sold door to door by team of six sales people in the Trichur and Malappuram districts of Kerala.
  • 1986: Jyothy Laboratories releases its first print advertisement in the Kerala-based Mathrubhoomi newspaper.
  • 1987: It also entered in the market of Tamil Nadu.
  • 1992: The company set up factory located at Chennai to manufacture Ujala.
  • 1992: The same year the company was incorporated.
  • 1994: The company set up a plant In Pondicherry.
  • 1995: The company launched Nebula, an oil-based antibacterial washing soap in Kerala
  • 1997: Jyothy Laboratories launches Ujala all over India.
  • 2000: The company launched Maxo (mosquito repellent) in West Bengal. It also launched Exo (antibacterial dish wash bar) in Kerala, Karnataka, Tamil Nadu and Andhra Pradesh.
  • 2001: The company forayed into manufacturing of incense stick business and launched Maya.
  • 2002: JLL acquired Sri Sai Homecare, which has a mosquito coil production facility in Hyderabad.
  • 2002: The company launched Jeeva Ayurvedic Soap
  • 2005: Jyothy launched Xo Liquid and Ujala Stiff and Shine in South India.
  • 2007: The company entered into deed of assignment of trademark and copyright for the More Light and Ruby brands.
  • 2008: JIL launched Ujala Stiff & Shine all over India.
  • 2010: Jyothy Laboratories Ltd launches multi-insect repellent in technological association with DRDO''2011 -  DRDO (Ministry of Defence) ties up with Jyothy Laboratories Ltd to fight insect menace2012 - Jyothy Labs - Henkel India Ltd to merge with Jyothy Laboratories Ltd.
  • 2013: Jyothy Laboratories to set up subsidiary in Bangladesh
  • 2013: Jyothy Laboratories own Emerging India Award for the year 2013
  • 2014: Jyothy Laboratories own Indian Marketing Awards for the year 2014.
  • 2014: Jyothy Laboratories own India Star Packaging Award for the year 2014.
  • 2016: Jyothy Lab gets nod to merge subsidiary with itself.
  • 2017-18: Launched two innovative products in the market - T-Shine and Maxo Incense Sticks, both of which are path-breaking in their respective categories.
  • 2018-19: New Margo Glycerine with goodness of thousand neem leaves and pure glycerine launched
  • 2018-19: Ujala Crisp & Shine ‘Gold Collection‘ launched
  • 2019-20: Launched Margo Handwash and Margo Sanitizer.
  • 2019-20: The company has launched smaller packs of Pril Liquid.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback