Jyothy Labs saw its stock rise 2% to ₹556 in early trading on September 20, 2024, following the acquisition of the Hyderabad-based laundry service brand Quiclo, owned by Smartwash Solutions Private Limited. The deal, valued at ₹70 lakh plus taxes, is expected to bolster Jyothy Labs' footprint in the laundry and dry-cleaning services sector, particularly in Hyderabad.
Strengthening Presence in Laundry Services
This strategic acquisition includes Quiclo's software and customer database, allowing Jyothy Labs to expand its customer base and enhance its operations in the laundry services space. The company's laundry and dry-cleaning unit in Hyderabad has already commenced commercial operations, adding to its growing portfolio of services.
Growth and Profitability
Jyothy Labs recently reported a 5.7% rise in net profit for the first quarter of FY25, posting ₹101.7 crore compared to ₹96.3 crore in the same period last year. The company remains optimistic about the growth prospects, particularly with the expected uptick in rural demand, driven by a favorable monsoon season.
Focus on Rural Distribution and E-commerce
The management is sharpening its focus on rural markets, improving distribution channels, and introducing new product categories to meet diverse consumer needs. There is also a concentrated effort on increasing Jyothy Labs' presence across e-commerce platforms, boosting both visibility and sales.
Investor Sentiment
At 11:16 AM on September 20, shares of Jyothy Labs were trading at ₹550 on the NSE, reflecting a 25% rally over the past three months. Investors are optimistic about the company's future growth, thanks to its recent strategic moves and strong operating performance.
No comments:
Post a Comment