Jyothy Labs stock falls 4% on muted Q4FY25: Here's what analysts suggest

Business Standard

13-05-2025

Jyothy Labs share price today: Shares of soap and detergent manufacturer Jyothy Labs fell around 4 per cent to hit an intraday low of ₹337 on Tuesday after the company reported a subdued performance in the March 2025 quarter (Q4FY25).
The stock was down 3.81 per cent at ₹337.45 compared to the previous day's close of ₹350.80 on the National Stock Exchange (NSE), as of 2 PM. In comparison, the benchmark Nifty50 index was trading at 24,632.50, down 292.20 points or 1.17 per cent. Jyothy Labs stock is down over 43 per cent from its 52-week high of ₹595.85, touched on September 11, 2025.
Jyothy Labs Q4 FY25 results update
In Q4FY25, Jyothy Labs reported revenue from operations of ₹667 crore, up merely 1.1 per cent from ₹660 crore in the year-ago period. The company's operating Ebitda (earnings before interest, tax, depreciation and amortisation) came in at ₹112 crore, up 3.3 per cent from ₹108.4 crore in the corresponding quarter of the previous fiscal. Profit after tax (PAT) for the reported quarter was at ₹76.3 crore, down 2.4 per cent from ₹78.2 crore in the year-ago period.
In FY25, the company's revenue from operations rose 3.3 per cent to ₹2,847 crore compared to ₹2,757 crore in FY24. Its PAT remained flat at ₹370.4 crore as against ₹369.3 crore in the previous fiscal.
Brokerage Views on Jyothy Labs: Motilal Oswal Financial Services (MOFSL)
Analysts at MOFSL believe that subdued demand sentiment, high raw material cost inflation, and elevated competitive intensity could limit the company's growth in the near term. From hereon, market share gains and the success of new launches will be critical for its earnings growth.
"Jyothy Labs' margin expansion beyond 18 per cent is also constrained by its focus on the mass and rural segments. Therefore, we believe its growth potential is adequately priced in at the current valuation," the brokerage said.
MOFSL has maintained a 'Neutral' rating on the stock with a target price (TP) of ₹375.
Elara Capital
According to a report by Elara Capital, Jyothy Labs posted a 6.4 per cent volume growth in FY25, which was offset by weak performance in the household insecticide and personal care segments. "The growth outlook remains uninspiring in the near term, with urban demand facing headwinds and rising competitive pressure in detergents and dishwashing. However, the recent 5 per cent correction in the stock in the past three months offers a modest upside," it said.
The brokerage has retained an 'Accumulate' rating on the stock but reduced the TP to ₹390 from ₹450 earlier, citing the muted near-term growth visibility.
HDFC Securities
Analysts at HDFC Securities believe that Jyothy Labs' Q4 earnings were a mixed bag as domestic volume growth of 4 per cent was below their expectation of 7-8 per cent. However, Ebitda margin expanded to 16.8 per cent on account of a 10 per cent Y-o-Y decline in ad spends during the quarter. The company management expects margins to hover around 16-17 per cent, with an upside bias, as operating leverage flows through.
"In our view, the growth will be driven through gaining market share (despite being a challenger brand) by making its product portfolio comprehensive and providing value-for-money offerings and new leadership focusing on the fundamentals of FMCG, such as increasing the distribution network and shifting marketing spend from BTL to ATL. The earlier management was focused on mergers and acquisitions (M&As)," HDFC Securities said in a report.
The brokerage has maintained a 'Buy' rating on the stock with a target price of ₹505 per equity share.
About Jyothy Labs
Incorporated in 1992, Jyothi Laboratories is involved in the manufacturing and marketing of fabric care, dishwashing, mosquito repellent, personal care, household insecticides products, and provides laundry and dry cleaning services. It operates into six segments comprising dish washing, fabric care, household insecticides, personal care, laundry services and other products. The company has 23 manufacturing facilities across India.