External broker reports(aggregated public sources), HDFC Securities

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External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We initiate Jyothy Labs (JYL) with a high conviction BUY idea, with a TP of Rs 575 (40x June-26 EPS), as it is one of the few FMCG companies structurally poised for high single-digit volume growth, mid-teen EBITDA growth, and high-teen net income growth</li><li>We pencil in revenue/EBITDA/PAT CAGR of 12/16/17% over FY24-27, the second highest amongst our coverage of consumer staple companies</li><li>Our confidence stems from the fact that a) it operates in categories which have a higher Total Addressable Market and, despite being a challenger brand, is trying to grab a pie of the same via making the product portfolio comprehensive, launching low unit packs, communicating product superiority vs competition, and providing value-for-money offerings, b) doing basics of FMCG right under new leadership – i) increasing the distribution network and, at the same time, improving productivity, ii) moving on to Above the Line (ATL) spends, away from BTL spends, iii) focusing on low unit packs across the product portfolio, so that it aligns with the above-mentioned objectives, c) competent key management personnel are ensuring smooth execution of the above strategy, which was not the case with the erstwhile management, who were more tuned towards doing M&amp;A transactions</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We initiate Jyothy Labs (JYL) with a high conviction BUY idea, with a TP of Rs 575 (40x June-26 EPS), as it is one of the few FMCG companies structurally poised for high single-digit volume growth, mid-teen EBITDA growth, and high-teen net income growthWe pencil in revenue/EBITDA/PAT CAGR of 12/16/17% over FY24-27, the second highest amongst our coverage of consumer staple companiesOur confidence stems from the fact that a) it operates in categories which have a higher Total Addressable Market and, despite being a challenger brand, is trying to grab a pie of the same via making the product portfolio comprehensive, launching low unit packs, communicating product superiority vs competition, and providing value-for-money offerings, b) doing basics of FMCG right under new leadership – i) increasing the distribution network and, at the same time, improving productivity, ii) moving on to Above the Line (ATL) spends, away from BTL spends, iii) focusing on low unit packs across the product portfolio, so that it aligns with the above-mentioned objectives, c) competent key management personnel are ensuring smooth execution of the above strategy, which was not the case with the erstwhile management, who were more tuned towards doing M&amp;A transactionsContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Jyothy Labs (Initiating Coverage): Sarva Gunn Sampann. BUY

Jyothy Laboratories

Jyothy Labs (Initiating Coverage): Sarva Gunn Sampann. BUY