Jyothy Labs shares have given nearly 30% returns over a one-year period, outperforming the Nifty50 which has given 1% in the same time, according to data sourced from Trendlyne. The Mumbai-headquartered company has also outperformed the Nifty FMCG index. The latter has given negative 22% returns in last one year, Trendlyne data further showed.
The stock ended at Rs 187 on NSE, up Rs 3.20 or 1.74% on Tuesday.
Technical View by Nilesh Jain
Buy | CMP: Rs 187 | Target: Rs 200 | Stop Loss: Rs 177 | Upside: 6-7%
Jyothy Labs stock has a favourable risk-to-reward ratio at current levels and investors can look to buy the stock, Nilesh Jain, Assistant Vice President (AVP), Equity Research Technical and Derivatives at Centrum Broking.
His view on this stock is for 15-20 days.
The stock has a strong support at Rs 177, the Centrum analyst said. The stock has been less volatile in comparison to overall markets and has traded with a 1-year beta of 0.34.
Momentum indicators RSI and MFI are in a medium range at 36.4 and 47.8, respectively, according to Trendlyne which suggests that a pullback can be expected in this stock. A number below 30 suggests that the stock is trading in an oversold zone while above 70 it is in the overbought zone.
Fundamental View
Sharekhan on JLL: Buy | Target: Rs 240 | Upside 30%
Brokerage firm Sharekhan has maintained a ‘Buy’ on Jyothy Labs with a price target of Rs 240, estimating a 30% upside.
“JLL posted relatively better broad-based performance in the past few quarters despite input price inflation and a slowdown in volume growth (especially in rural India). Product innovation and availability of relevant product assortment for general trade/e-commerce/modern trade and distribution expansion will help JLL to continue to gain market share in key categories,” it said in its report.
Valuations
JLL’s stock price has corrected by 18% in the recent past and is currently trading at discounted valuations of 22X/18X its FY2024E/FY2025E earnings compared to some of the large peers, Sharekhan report said.
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, it further said.
Peer Comparison
ET CONTRIBUTORSET CONTRIBUTORSKey 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, Sharekhan said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
