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Jyothy Labs extends rally on strong Q4 operational performance; 1:1 bonus

The stock moved higher by 11% to Rs 437, extending its previous day's 5% rally on the BSE, quoting close to its all-time high of Rs 441 recorded on September 19, 2017 on the BSE in intra-day trade.

SI Reporter  |  Mumbai 

fmcg, consumer goods
fmcg, consumer goods

Shares of have moved higher by 11% to Rs 437 per share, extending their previous day's 5% rally on the after the board has recommended issue of bonus shares in the ratio of 1:1 i.e. one bonus share for every one share held on the record date.

The company reported a strong operational performance in March 2018 quarter (Q4FY18) with EBIDTA (earnings before interest, tax, depreciation and amortization) margin 330 bps to 17.1% from 13.8% (on GST adjusted sales) in previous year quarter. Q4FY2018 was the second consecutive quarter of double-digit volume growth.

The significant growth that the company has achieved in the previous quarter has assured us that we are taking necessary steps. The rural and urban demand is expected to grow due to many factors such as predicted good monsoon & initial signs have already kicked in. We will continue to invest on our individual brands and focus upon providing the best quality across categories without compromising margins as stated before," said M P Ramachandran - Chairman & Managing Director,

“With pickup in rural demand and trade channels getting back in trade, the management is confident of achieving mid-teen revenue growth (volume growth of 10-12%) in the coming quarters,” the brokerage firm Sharekhan said in a note with maintain Buy recommendation the stock with revised price target of Rs 450.

At 10:25 am; was trading 11% higher at Rs 435, as compared to 0.07% decline in the S&P Sensex. The stock quoting close to its all-time high of Rs 441 recorded on September 19, 2017 on the in intra-day trade.

The counter has seen multiple-fold jump in trading volumes with a combined 808,704 shares changed hands on the BSE and so far.

First Published: Thu, May 17 2018. 10:30 IST