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U j a l a , E x o g r o w s w e l l, M a x o s t i l l a d r a g …
Jyothy Laboratories posted robust Q3FY12 results with net profit growth
by 72%. Net sales grew by 12% led by ~7% volume growth and ~5%
price rise across categories. The strong volume growth can be attributed
to 10% volume growth in fabric whiteners and almost 38% growth in the
dishwashing segment. EBITDA margins improved from 11.3% in Q3FY11
to 16.8% in Q3FY12 on the back of a considerable reduction in
advertisement & promotion expenditure. The company reduced
advertisement expenditure as percentage of sales from 10.3% in Q3FY11
to 4% in Q3FY12. Improved EBITDA and higher other income resulted in
net profit growth of 72% to | 29.1 crore.
ƒ Segmental performance
The company has witnessed 14% growth in the fabric whitener
segment led by 10% volume growth and 4% price hikes.
Simultaneously, the dish washing business witnessed 44% growth
in sales led by 38% volume growth and 6% price hikes. However,
mosquito repellent sales contracted by 18%. The company has
taken various steps to re-align the cost structure by reducing adspend and improving the working capital cycle.
V a l u a t i o n
At the CMP, the stock is trading at 19.5x and 17.8x its FY12E and FY13E
EPS of | 8.6 and | 9.4, respectively. The company has taken price
increases (~7%) across all its SKUs from October, 2011 onwards, which
contributed 5% in the current quarter. However, the full impact of the
price hike would be visible from the March 2012 quarter. We believe the
further topline growth and margin improvement would be visible in the
coming quarters. However, the stock is fairly valued considering
standalone FY13E numbers. We still remain cautious on Henkel’s
performance. Hence, we have valued the stock at 18x its FY13E
standalone EPS of | 9.4 with a target price of | 170/ share.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
U j a l a , E x o g r o w s w e l l, M a x o s t i l l a d r a g …
Jyothy Laboratories posted robust Q3FY12 results with net profit growth
by 72%. Net sales grew by 12% led by ~7% volume growth and ~5%
price rise across categories. The strong volume growth can be attributed
to 10% volume growth in fabric whiteners and almost 38% growth in the
dishwashing segment. EBITDA margins improved from 11.3% in Q3FY11
to 16.8% in Q3FY12 on the back of a considerable reduction in
advertisement & promotion expenditure. The company reduced
advertisement expenditure as percentage of sales from 10.3% in Q3FY11
to 4% in Q3FY12. Improved EBITDA and higher other income resulted in
net profit growth of 72% to | 29.1 crore.
ƒ Segmental performance
The company has witnessed 14% growth in the fabric whitener
segment led by 10% volume growth and 4% price hikes.
Simultaneously, the dish washing business witnessed 44% growth
in sales led by 38% volume growth and 6% price hikes. However,
mosquito repellent sales contracted by 18%. The company has
taken various steps to re-align the cost structure by reducing adspend and improving the working capital cycle.
V a l u a t i o n
At the CMP, the stock is trading at 19.5x and 17.8x its FY12E and FY13E
EPS of | 8.6 and | 9.4, respectively. The company has taken price
increases (~7%) across all its SKUs from October, 2011 onwards, which
contributed 5% in the current quarter. However, the full impact of the
price hike would be visible from the March 2012 quarter. We believe the
further topline growth and margin improvement would be visible in the
coming quarters. However, the stock is fairly valued considering
standalone FY13E numbers. We still remain cautious on Henkel’s
performance. Hence, we have valued the stock at 18x its FY13E
standalone EPS of | 9.4 with a target price of | 170/ share.
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