Jyothy Labs Limited

Consumer Defensive — Household & Personal Products · NSE

₹192.00+₹0.39 (+0.20%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Jyothy Labs Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Jyothy Labs Limited, together with its subsidiaries, manufactures and markets fabric care, dishwashing, personal care, and household insecticides products in India and internationally.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees2,970

Annual revenue₹2,942 Cr

How does it make money?

Turns over ₹2,942 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 2,970 employees supports ₹99.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹99.1 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.0% against a peer median of 27.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE27.4%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 9.2% and earnings to grow about 41.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.2%

Est. earnings growth+41.4%

Analysts12

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +18% while net margin moved +17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+18%

Margin effect+17%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.8% — barely ahead of inflation
• Profit CAGR of 11.6%
✗ Profit fell 50.8% in the latest year

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

24.8x

3Y Median

34.4x

40 monthly readings · mean 41.8x · range 19.0x–80.7x

Sector Median

38.6x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 3y median of 34.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 36% below the peer median of 38.6x.

vs. its own history

Cheap

34.4x median over 40 months · -28%

vs. sector peers

Cheap

38.6x median of 4 peers · -36%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.6x

PEG

2.14

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 13.6% to 16.4% over 3 years.
Return on equity is rising
ROE has improved from 15.5% to 21.0%.
Return on capital is rising
ROCE has improved from 18.9% to 26.9%.
High return on capital employed
ROCE of 26.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 3.25x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 86% against revenue up 18% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 13.6% to 16.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 28% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 36% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 3.25x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 86% against revenue up 18%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 14%✓ 16.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.8% CAGR
Latest reported year was 3.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹345 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹7,051 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.8x

Fair

Fairly valued against the generic band

P/B Ratio

4.44x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.74

Profitable

Profitable on a per-share basis

ROE

21.0%

Strong

Strong capital efficiency

ROCE

26.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.25x

High

High leverage

Revenue Growth (YoY)

3.0%

Modest

Modest growth

Profit Growth (YoY)

-50.8%

Falling

Profits are shrinking

Dividend Yield

1.82%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹345 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

20.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.3%

Average

Average margins

Net Margin

9.6%

Average

Average bottom-line conversion

Current Ratio

2.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

189.1 / 197.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,484 Cr	₹2,755 Cr	₹2,842 Cr	₹2,942 Cr	+5.8%
EBITDA	₹337 Cr	₹515 Cr	₹537 Cr	₹483 Cr	+12.7%
EBITDA Margin	13.6%	18.7%	18.9%	16.4%	—
PAT (Net Profit)	₹240 Cr	₹369 Cr	₹371 Cr	₹333 Cr	+11.6%
EPS	₹6.53	₹10.06	₹10.11	₹9.07	+11.6%
ROE	15.5%	20.4%	26.8%	21.0%	—
ROCE	18.9%	25.2%	32.7%	26.9%	—
Total Debt	₹47 Cr	₹51 Cr	₹61 Cr	₹52 Cr	+3.5%
Free Cash Flow	₹293 Cr	₹421 Cr	₹253 Cr	₹345 Cr	+5.6%

🟢 Revenue has grown at 5.8% a year over 3 years.

🟢 EBITDA has grown at 12.7% a year over 3 years.

🟢 EBITDA Margin has risen from 13.6% to 16.4% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 11.6% a year over 3 years.

🟢 EPS has grown at 11.6% a year over 3 years.

🟢 ROE has risen from 15.5% to 21.0% over 3 years (+5.5 pts).

🟢 ROCE has risen from 18.9% to 26.9% over 3 years (+8.0 pts).

🔴 Total Debt has grown at 3.5% a year over 3 years.

🟢 Free Cash Flow has grown at 5.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,252 Cr

Total Liabilities

₹664 Cr

Cash & Equivalents

₹53 Cr

Operating Cash Flow

₹412 Cr

Capex

-₹67 Cr

Shareholding (proxy)

Institutional Holding

15.2%

Insider Holding

70.8%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

29 Jun 2026

Analyst Consensus

Recommendations

6 Buy · 3 Hold · 2 Sell

Target Price (Mean)

₹231.18

+20.4% vs CMP

Target Range

₹181 – ₹310

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive4 mixed1 general

Jyothy Labs (NSEI:JYOTHYLAB) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Jyothy Labs: Why has the stock fallen by over 60 per cent?

Value Research, 31 Aug

Jyothy Labs Ltd. Share Price News on Mid Cap Price Rise

Univest, 17 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

JYOTHYLAB Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Jyothy Labs Q3 Results 2026 - Find Jyothy Labs Q3 Earnings Result | JYOTHYLAB Q3 results

Livemint, 09 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Jyothy Labs Q1 Results: Net Profit Slumps 51% As Margin Shrinks, Revenue Up 3% YoY; Stock Falls 4%

NDTV Profit, 12 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑