Recent Price Movement and Market Context
The stock has been on a declining streak for the past two days, registering a cumulative loss of 1.83% during this period. Despite outperforming the FMCG sector marginally by 0.27% today, Jyothy Labs remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish sentiment surrounding the stock.
In contrast, the broader market, represented by the Sensex, experienced a sharp reversal after a positive start, closing down by 1.48% at 82,498.14 points. The Sensex remains 4.44% shy of its 52-week high of 86,159.02, with its 50-day moving average still above the 200-day moving average, indicating a generally healthier market trend compared to Jyothy Labs’ stock.
Long-Term Performance and Valuation Metrics
Over the last year, Jyothy Labs has delivered a negative return of 32.82%, significantly underperforming the Sensex, which posted an 8.64% gain over the same period. The stock’s 52-week high was Rs.399.95, highlighting the extent of the decline to the current low.
Financially, the company’s long-term growth has been modest, with net sales increasing at an annualised rate of 10.20% and operating profit growing at 14.04% over the past five years. These figures suggest steady but unspectacular expansion relative to sector peers.
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Recent Financial Indicators and Operational Data
The company’s quarterly earnings per share (EPS) have declined to Rs.2.08, marking the lowest level in recent periods. Additionally, the debtors turnover ratio for the half-year stands at 10.37 times, reflecting a slower collection cycle compared to historical averages. Cash and cash equivalents have also decreased, with the latest half-year figure at Rs.142.35 crores, indicating a tighter liquidity position.
Profitability has seen a downturn as well, with profits falling by 7.3% over the past year. This decline in earnings has contributed to the stock’s underperformance relative to the BSE500 index over one, three years, and the last three months.
Valuation and Efficiency Metrics
Despite the challenges, Jyothy Labs maintains a high return on equity (ROE) of 16.06%, signalling efficient management of shareholder funds. The company’s average debt-to-equity ratio remains at zero, reflecting a conservative capital structure with minimal leverage.
Valuation metrics show an attractive price-to-book value of 4.4, which is below the average historical valuations of its peers in the FMCG sector. This discount suggests that the market is pricing in the recent performance concerns but also reflects the company’s underlying asset base and profitability.
Institutional investors hold a significant stake of 27.91%, indicating confidence from entities with substantial analytical resources and long-term perspectives.
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Mojo Score and Analyst Ratings
Jyothy Labs currently holds a Mojo Score of 44.0, categorised under a Sell rating. This represents a downgrade from its previous Hold grade, which was revised on 6 November 2025. The market capitalisation grade stands at 3, reflecting its mid-tier size within the FMCG sector.
The downgrade aligns with the stock’s recent price weakness and subdued financial performance, signalling caution in the near term.
Summary of Key Metrics
To encapsulate, Jyothy Labs’ stock has declined to Rs.238.6, its lowest level in 52 weeks, after a sustained period of underperformance. The stock’s technical indicators remain weak, with prices below all major moving averages. Financially, the company has experienced modest growth in sales and operating profit over five years but has seen recent declines in earnings and liquidity metrics.
While management efficiency remains commendable, and the company’s capital structure is conservative, these positives have not translated into positive stock returns over the past year. Institutional holdings remain relatively high, suggesting some confidence in the company’s fundamentals despite the current market valuation.
The broader market context shows a contrasting picture, with the Sensex maintaining a position near its 52-week high, underscoring the relative weakness of Jyothy Labs within the FMCG sector and the wider market.
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