Jyothy Labs shares zoom 19% today; here's what brokerages say

Shares of Jyothy Labs Ltd surged 19.12 per cent in Wednesday's trade to hit a day high of Rs 514.95. The multibagger stock has gained nearly 140 per cent in the past one year. Today, it saw heavy trading volume as 1.66 lakh shares were last seen changing hands on BSE. The figure was higher than the two-week average volume of 63,000 shares. Turnover on the counter came at Rs 8 crore, commanding a market capitalisation (m-cap) of Rs 17,868.37 crore.

The pharma company said it reported a consolidated net profit of Rs 90.9 crore for the December quarter (Q3 FY24), growing 34.9 per cent from the year-ago period. Its revenue came in at Rs 677.5 crore, up 10.6 per cent from Rs 612.7 crore in the year-ago quarter.

During the quarter under review, earnings before interest, tax, depreciation and amortization (EBIDTA) was at Rs 118.6 crore, up 40.6 per cent.

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The firm said it delivered sales of Rs 678 crore in Q3 FY24, an increase of 10.6 per cent against the same period last fiscal.

Domestic brokerages were divided on the counter. Axis Securities gave a 'Buy' call for Jyothy Labs with a target price of Rs 565. In contrast, Kotak Institutional Equities assigned a 'Sell' call, pegging the scrip at a fair value of Rs 420.

On technical setup, the stock traded higher than the 5-day, 10-, 20-day, 30-day, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 50.50. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 45.27 against a price-to-book (P/B) value of 16.33.

As of December 2023, promoters held 62.89 per cent stake in the pharma company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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