Eveready Industries
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Eveready Industries is strategically positioned for growth, driven by the commissioning of its Jammu manufacturing facility, which enhances supply resilience and cost efficiencies. Management's focus on premiumization, particularly in the alkaline battery segment, aligns with consumer trends and is expected to support revenue growth. However, the company faces challenges from rising commodity costs and potential supply chain disruptions due to geopolitical tensions. Vista's financial outlook reflects stable revenue growth, although margins are anticipated to remain under pressure due to these cost challenges. The expected EBITDA margin of around 11.5% indicates management's commitment to disciplined cost management. The industry context, characterized by expanding domestic battery manufacturing and improving pricing power, supports Eveready's long-term growth potential. Over the next 12-24 months, key opportunities include the ramp-up of the Jammu facility and the introduction of new premium products, while watchpoints include commodity cost pressures and competitive intensity in the market
Why We Like This Stock
- The commissioning of the Jammu facility is expected to enhance supply chain resilience and cost efficiencies
- Management's focus on premium alkaline batteries aligns with consumer demand, supporting revenue growth
- The industry is expanding, with improving pricing power and a shift towards domestic manufacturing
Things To Watch Out For
- Rising commodity costs, particularly for zinc, pose a risk to margins and profitability
- Geopolitical tensions may lead to supply chain disruptions and higher inflation linked to crude oil prices
- High competitive intensity in the battery market could impact Eveready's market share and pricing strategies
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,314 | 1,345 | 1,455 | 1,500 | 1,613 |
| Profit Before Tax (Cr.) | 82 | 99 | 118 | 137 | 143 |
| PBT Margin | 6.2% | 7.4% | 814.0% | 9.1% | 8.9% |
| Net Profit (Cr.) | 69 | 80 | 147 | 103 | 107 |
| Earnings Per Share | 9.5 | 11.0 | 20.2 | 14.1 | 14.8 |
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 zinc carbon, alkaline, coin cell, and rechargeable batteries, as well as chargers; and plastic light-emitting diode (LED), brass, aluminum, and rechargeable torches; and portable lanterns. It also provides consumer lighting products, such as LED bulbs, LED battens, emergency LEDs, LED panels, LED downlights and spotlights, and outdoor and festive lighting; professional lighting, including indoor architectural, commercial, industrial, facade, and flood lighting; electrical accessories comprising surge protectors, extension reels, multi-plugs, doorbells, plug tops, immersion heaters, and dry irons; and mosquito racquets. In addition, the company is involved in distribution of electrical products; and trading of raw materials. It sells its products under the Eveready, PowerCell, Ultima, Shakti, and Uniross brands. Eveready Industries India Limited was founded in 1905 and is based in Kolkata, India.