Business

Jyothy Labs shares tumble 15% in two days after Henkel ends Pril, Fa licence agreements

Published

4 weeks ago

12 May 2026

Jyothy Labs shares tumble 15% in two days after Henkel ends Pril, Fa licence agreements

Jyothy Labs shares declined 5% to Rs 225.20 during Tuesday’s trading session, extending losses for the second consecutive day. The stock has fallen nearly 15% over the two sessions following the company’s announcement that the licence agreements for the dishwashing brand Pril and the personal care brand Fa with Henkel will not be renewed beyond May 31, 2026.

On Saturday, Jyothy Labs said the decision marks the end of a nearly 15-year partnership between the two companies.

The company added that it is preparing for an “orderly transition” and plans to sharpen its focus on its owned brands, especially Exo in the dishwash category. While Pril has historically been Jyothy Labs’ flagship dishwash liquid brand, Exo has remained a strong player in the dishwash bars segment.

Jyothy Labs had acquired Henkel’s India consumer business in 2011 through a transaction involving brands, assets, and operations. Under the agreement, Pril and Fa were operated under fixed-term licence arrangements, whereas brands such as Mr White and Henko continued under perpetual licence agreements.

The company fully owns brands including Margo, Neem toothpaste, Tuhina, and Chek. Jyothy Labs also stated that discussions with Henkel regarding a possible renewal had been underway for several months, including the evaluation of “commercial and business continuity alternatives”.

Share Price and Technical Indicators

Jyothy Labs currently commands a market capitalisation of Rs 8,300.88 crore. The stock touched a 52-week high of Rs 378.20.
On the valuation front, the company is trading at a price-to-earnings (P/E) ratio of 26.14, while its price-to-sales (P/S) ratio stands at 2.46. The price-to-book (P/B) ratio is 5.48.
Technically, the stock’s 14-day Relative Strength Index (RSI) is at 43.6. Typically, an RSI below 30 indicates oversold conditions, while a level above 70 suggests the stock may be overbought. Jyothy Labs is currently trading below all eight of its key simple moving averages (SMAs), signalling a bearish trend.

Institutional sentiment remained subdued during the March 2026 quarter. Foreign Institutional Investors (FIIs) trimmed their stake from 12.77% to 12.35%, while Mutual Fund holdings declined from 13.73% to 13.15%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Business

FS.COM shares jump over 10% after buyback plan announcement

Published

7 minutes ago

11 June 2026

NewsAdmin

FS.COM shares jump over 10% after buyback plan announcement

Business

Honasa shares jump 6% on Rs 5,500 crore revenue target by FY31. What is Goldman Sachs saying?

Published

13 minutes ago

11 June 2026

NewsAdmin

Honasa shares jump 6% on Rs 5,500 crore revenue target by FY31. What is Goldman Sachs saying?

Shares of Honasa Consumer, the parent company of Mamaearth, rallied 6% to their day’s high of Rs 438 on the BSE as investors cheered the company’s revenue target of Rs 5,500 by the financial year 2031.

The company’s revenue outlook implies a CAGR of about 18% between FY26 and FY31. Mamaearth is expected to remain the key growth driver, with revenue crossing Rs 2,000 crore by FY31, while The Derma Co is projected to contribute nearly Rs 1,500 crore during the same period.

Further, the company plans at least two more Rs 500 crore revenue-generating brands across the portfolio, it said in an investor presentation. It owns brands such as Aqualoga, BBlunt, Dr Sheth’s, and Reginald Men.

Honasa plans to expand EBITDA margins to 15% by unlocking a 500-basis-point improvement through a stronger presence in higher-margin channels and categories, alongside benefits from scale and operating efficiencies.

The company’s direct outlet network is targeted to grow from around 1.2 lakh outlets currently to 3 lakh outlets by FY31. A greater mix of general trade, modern trade, and quick commerce is also expected to support margin expansion.

Honasa aims to become the national market leader in at least two skincare categories, while securing a top-three market share position in at least two additional categories.
Following the development, Goldman Sachs raised the target price of Rs 400, which the company has already surpassed. The international brokerage has maintained a Neutral rating on the counter.
Reflecting faster profitability improvement, the brokerage has raised its FY27-FY29 earnings estimates by 1-4%. However, Goldman Sachs believes the stock’s risk-reward remains balanced at current valuations.

Honasa Q4 snapshot

The company reported a whopping 177% year-on-year (YoY) jump in consolidated net profit to Rs 69 crore for the fourth quarter of the financial year 2026, from Rs 25 crore in the year-ago period.
Honasa’s revenue from operations, meanwhile, jumped over 23% YoY to Rs 657 crore during Q4 of FY26, compared to the Rs 533 crore revenue reported in the corresponding quarter of FY25.

Honasa shares have risen 64% in the last six months and about 50% in 2026.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)