Buy Midcap FMCG Stock For 16% Potential Upside, Scrip Hit New 52-Week High: Sharekhan

Sharekhan has come up with a recommendation of a Buy call on Jyothy Labs Ltd. (JLL) with a target price of Rs 275 apiece. The brokerage claims a decent upside of up to 16% from its current level, considering the given target price. The stock hit a new 52-week high today, at Rs 242.80 apiece on BSE.

Founded in 1983, Jyothy Labs Limited is a midcap FMCG sector company. It a is renowned brand in the domestic FMCG industry. The company has a market capitalisation of Rs 8.732.22 Crore.

View - Maintain Buy with a revised PT of Rs. 275

According to Sharekhan, JLL posted relatively better broad-based performance in past few quarters despite inflation in input prices 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. The stock trades at 29.2x/24.3x its FY2024/25E earnings. "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. We maintain a Buy recommendation on the stock with a revised price target (PT) of Rs. 275," the brokerage has said.

Key Risks - A late recovery in HI category or a market share loss in some of the key categories would act as a key risk to our earnings estimates.

Stock Movement

The stock last traded at Rs 237.80 apiece, down 0.08% from its previous close. It hit a new 52-week high today at Rs 242.80 apiece on BSE, currently trading 2.1% down from its 52-week high. While its 52-week low is Rs 163.10 apiece on BSE.

Stock jumped 6.64% in the past 1 week, while in 2 weeks it jumped 10.04%. In the past 1 and 3 months, it jumped 17.61% and 22.29%, respectively. It jumped 43.25% in the past 1 year. In the past 3 years, it jumped 101.87%. In the past 5 years, it jumped 8.02%.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.