Jyothy Labs Ltd.
ISIN: INE668F01031 • Market Cap: ₹7,631 Cr
The 5-Pillar Quality Audit for Jyothy Labs Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (13.2%), Return on Capital Employed (20.4%), and equity compounding (21.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (9.0%) and 3Y PAT CAGR (31.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 26.86 vs PEG of 3.09 and Dividend Yield of 1.7%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 62.9%, backed by 25.5% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 20.4%)
Jyothy Labs Ltd. generates exceptional return on capital employed of 20.4%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 21.0%)
Shareholder equity compounds at a healthy 21.0%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
High-Velocity Profit Compounding (3Y PAT CAGR: 31.8%)
Net earnings have compounded at 31.8% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (25.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 25.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Fast Moving Consumer Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Fast Moving Consumer Goods space.
Quantitative Strategy Eligibility
Checking JYOTHYLAB against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 79/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Fast Moving Consumer Goods Sector Peer Comparison
Compare JYOTHYLAB directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Jyothy Labs Ltd. (JYOTHYLAB)Current | 79/100 | ₹7,631 Cr | 26.86 | 20.4% | 0.00 | — |
| Hindustan Unilever Ltd. (HINDUNILVR) | 75/100 | ₹4.74 Lakh Cr | 31.67 | 22.6% | 0.00 | View |
| ITC Ltd. (ITC) | 81/100 | ₹3.34 Lakh Cr | 16.86 | 36.4% | 0.03 | View |
| Nestle India Ltd. (NESTLEIND) | 68/100 | ₹2.83 Lakh Cr | 74.37 | 57.2% | 0.00 | View |
| Varun Beverages Ltd. (VBL) | 75/100 | ₹1.46 Lakh Cr | 43.23 | 19.6% | 0.10 | View |
| Britannia Industries Ltd. (BRITANNIA) | 74/100 | ₹1.30 Lakh Cr | 50.04 | 62.3% | 0.27 | View |
Frequently Asked Questions: Jyothy Labs Ltd.
Q:What is the 5-Pillar Fundamental Score for Jyothy Labs Ltd. (JYOTHYLAB)?
Jyothy Labs Ltd. has a RupeeTools Fundamental Score of 79/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (82/100), Financial Health (89/100), Growth (78/100), Valuation (60/100), and Ownership Quality (78/100).
Q:Is JYOTHYLAB fundamentally strong for long-term investment?
Yes, JYOTHYLAB exhibits solid fundamental strength with a 79/100 score, driven by a return on equity of 21.0% and a debt-to-equity ratio of 0.00.
Q:Does JYOTHYLAB pass the Coffee Can Investing filter?
Yes! JYOTHYLAB satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does JYOTHYLAB compare against other Fast Moving Consumer Goods peers?
Within India's Fast Moving Consumer Goods sector, JYOTHYLAB trades at a P/E of 26.86 and generates an ROCE of 20.4%. Compare its 5-Pillar score of 79/100 against top sector peers like Hindustan Unilever Ltd. (75/100), ITC Ltd. (81/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.