This is how they define themselves: In 1983, one man’s dream gave birth to Jyothy Labs in Thrissur, Kerala. MP Ramchandran had one goal: touching and bettering lives with innovation. From manufacturing and selling a single product to a household name in the category, Jyothy Labs has come a long way. With a turnover of about Rs . 1,800 Crores, we continue to grow as one of the country’s most trusted brands. Our products are priced affordably, packaged exceptionally and distributed nationally.
Fundamentals: > It is a small cap company with a market cap of just Rs . 5,855 Cr . Not very small though. > The ROCE is at 17.8% and ROE is at 15% which is good considering the size of the company. > Stock P/E is at 29 which makes the valuation attractive as compared to the main competitor HUL P/E at 69. > It is almost a debt free company, reducing its borrowings continuously on year on year basis, that's a very good sign from investment perspective. > Topline and bottomline both are very impressive. > Company has been maintaining a healthy dividend payout of 65% > It is increasing it's cash reserve on YOY basis, currently have huge cash reserve as compared to its borrowings. > The company has maintained its Operating Profit Margin (OPM) at or above 15% since last 5 years, that's again a positive sign. > Holdings: Promoters holding are intact at 62.89, FIIs and DIIs both have huge stake in the company very recently as compared to the it's pears. > Popular Brands: Henko, Ujala, Mr White, Maxo, Pril & Margo
Technicals: > Stock looking very good on chart, its making rounding bottom pattern, one of the very profitable chart pattern and it is about to give breakout. > Trading above 100 DMA and about to break 200 DMA. > It is clear from volume at the bottom that lot of accumulation is going on in the company and bull run is around the corner.
Fresh Buy - At CMP i.e. 158. Old Buy - HOLD First Target - 201 Second Target - 241
Happy Investing! Team ShareMktSchool
Nota
CMP is 184, those who have taken entries enjoy the profit but keep holding tight.
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