Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_JyothyLaboratories_Q4FY12.pdf
R e s t o r i n g g r o w t h …
Jyothy Laboratories’ (JLL) Q4FY12 results surpassed our expectations.
The growth across all business categories (soaps & detergents and
homecare) was led by both volumes and price increases taken during
H2FY12. JLL consolidated its books with Henkel India Ltd (HIL) from FY12
onwards. The company announced a bonus issue of 1:1 and a dividend
of | 2.5/share. We maintain our HOLD recommendation on the stock.
ƒ Standalone performance back on track
JLL’s sales performance witnessed a setback in Q4FY11. However, it has
posted a robust revival in Q4FY12 with exceptional growth in the
dishwashing category. The YoY sales growth in Q4FY12 stood at 34% in
fabricare (Ujala), 32% in mosquito repellent (Maxo) and 84% in
dishwashing (Exo). With sales on track and effective price increases,
EBITDA increased ~30% while margins improved ~500 bps. Going
ahead, with the re-alignment of the distribution model in place, we expect
sales to grow at a CAGR of 11.2% (FY12-14E) and margins to further
improve to ~13% by FY14E.
ƒ Henkel turnaround to stimulate growth
Having completed the acquisition of HIL in August, 2011, JLL successfully
improved the performance of HIL, thereafter, by rationalising costs.
Hence, it became EBITDA positive (EBITDA loss of | 16.9 crore in CY11 to
EBITDA of | 30.5 crore in FY12). JLL anticipates a volume growth of
~20% from HIL sales in FY13E, which, we believe, would be a booster for
JLL’s overall performance. The company has appointed S Raghunandan
as the new CEO of HIL with effect from May 23, 2012.
V a l u a t i o n
With revenue growth getting back on track and volume growth across
categories being healthy, we expect JLL’s core business growth to be
restored. Moreover, with the consolidation of strong brands of HIL in the
portfolio with aggressive marketing initiatives in place, we expect
consolidated revenues to post a CAGR of 15.5% and a robust
improvement in PAT. We have revised our target price to | 216.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_JyothyLaboratories_Q4FY12.pdf
R e s t o r i n g g r o w t h …
Jyothy Laboratories’ (JLL) Q4FY12 results surpassed our expectations.
The growth across all business categories (soaps & detergents and
homecare) was led by both volumes and price increases taken during
H2FY12. JLL consolidated its books with Henkel India Ltd (HIL) from FY12
onwards. The company announced a bonus issue of 1:1 and a dividend
of | 2.5/share. We maintain our HOLD recommendation on the stock.
ƒ Standalone performance back on track
JLL’s sales performance witnessed a setback in Q4FY11. However, it has
posted a robust revival in Q4FY12 with exceptional growth in the
dishwashing category. The YoY sales growth in Q4FY12 stood at 34% in
fabricare (Ujala), 32% in mosquito repellent (Maxo) and 84% in
dishwashing (Exo). With sales on track and effective price increases,
EBITDA increased ~30% while margins improved ~500 bps. Going
ahead, with the re-alignment of the distribution model in place, we expect
sales to grow at a CAGR of 11.2% (FY12-14E) and margins to further
improve to ~13% by FY14E.
ƒ Henkel turnaround to stimulate growth
Having completed the acquisition of HIL in August, 2011, JLL successfully
improved the performance of HIL, thereafter, by rationalising costs.
Hence, it became EBITDA positive (EBITDA loss of | 16.9 crore in CY11 to
EBITDA of | 30.5 crore in FY12). JLL anticipates a volume growth of
~20% from HIL sales in FY13E, which, we believe, would be a booster for
JLL’s overall performance. The company has appointed S Raghunandan
as the new CEO of HIL with effect from May 23, 2012.
V a l u a t i o n
With revenue growth getting back on track and volume growth across
categories being healthy, we expect JLL’s core business growth to be
restored. Moreover, with the consolidation of strong brands of HIL in the
portfolio with aggressive marketing initiatives in place, we expect
consolidated revenues to post a CAGR of 15.5% and a robust
improvement in PAT. We have revised our target price to | 216.
No comments:
Post a Comment