Jyothy Labs Ltd. has received a BUY rating from Geojit Financial Services, with a revised target price of Rs 496. This target price reflects a valuation of 36 times the estimated EPS for December 2026.

The recommendation comes in light of flat revenue growth year-on-year for Q2FY25, which is attributed to a high base from the previous year. However, there was a 3% increase in volumes. The key segments of fabric care and dishwashing, which make up 78% of the mix, reported stagnant growth, while personal care declined by 4.5%. Despite these challenges, Jyothy Labs managed to improve its EBITDA margin by 40 basis points to 18.9%, even with increased advertising expenditures. The company expects an EBITDA margin of 16-17% for FY25, influenced by rising input costs and the need for brand investments.

Looking ahead, Jyothy Labs anticipates mid to single-digit volume growth, taking into account disruptions in the southern region and planned price hikes in personal care products due to higher palm oil prices. The company has significantly expanded its distribution network, increasing direct reach from 86,000 to 1.2 million since FY21, which has supported double-digit growth over the past two years.