Eveready Industries
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Eveready Industries is navigating a complex landscape marked by geopolitical risks and supply chain challenges, yet management's strategic pivot towards premium alkaline batteries and enhanced operational efficiencies positions the company for potential growth. The commissioning of the Jammu facility is a critical development, expected to bolster margins and supply resilience, while the focus on expanding the premium product portfolio aims to capture a larger market share. Vista's financial outlook reflects stable revenue growth and improving margins, supported by disciplined cost management and a strategic emphasis on innovation. However, headwinds such as commodity price volatility and inflationary pressures remain pertinent, necessitating vigilant monitoring. Over the next 12-24 months, key opportunities lie in the successful scaling of the Jammu plant and the expansion into high-growth electrical categories, while risks include external inflationary pressures and potential demand softness in traditional segments. Overall, Eveready is positioned for sustainable growth, albeit with caution warranted due to the identified challenges
Why We Like This Stock
- The commissioning of the Jammu facility is expected to enhance supply resilience and support margin expansion
- Management's focus on premium alkaline batteries aligns with consumer trends, potentially increasing market share
- Disciplined cost management and strategic capital allocation are anticipated to improve profitability
Things To Watch Out For
- Commodity price volatility, particularly in zinc, poses risks to margins and profitability
- Geopolitical tensions and inflationary pressures could dampen consumer demand and operational stability
- High competitive intensity in the FMCG space may challenge market positioning and pricing power
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,314 | 1,345 | 1,455 | 1,500 | 1,620 |
| Profit Before Tax (Cr.) | 82 | 99 | 118 | 125 | 134 |
| PBT Margin | 6.2% | 7.4% | 8.1% | 8.3% | 8.3% |
| Net Profit (Cr.) | 69 | 80 | 147 | 94 | 101 |
| Earnings Per Share | 9.5 | 11.0 | 20.2 | 12.9 | 13.9 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Eveready Industries India Limited manufactures and markets dry cell batteries, flashlights, and lighting and electrical products in India and internationally. The company offers carbon zinc, alkaline, coin cells, lithium AA/ AAA, and rechargeable batteries, as well as chargers; and rechargeable lanterns/rechargeable headlamps, brass, aluminum, and rechargeable torches. It also provides consumer lighting products, such as LED bulbs, LED battens, LED panels and downlights, and outdoor and decorative lighting; architectural, motion sensor, emergency, and festive range products; professional lighting, including indoor architectural, commercial, industrial, stadia, facade, outdoor landscape and architectural, and outdoor lighting; and electrical accessories comprising power banks, chargers, cables, room heaters, immersion heaters, electric kettles, dry irons, PVC insulation tapes, spike guards, multiplugs, plug tops, doorbells, water alarm bells, rechargeable fans, rechargeable led table lamps, and mosquito racquets. In addition, the company is involved in marketing of goods; and trading of raw materials. It sells its products under the Eveready, PowerCell, Ultima, Shakti, and Uniross brands. The company sell its products through a network of distributors, stockiest, and retail partners. Eveready Industries India Limited was founded in 1905 and is based in Kolkata, India.