Eveready Industries

By- V.Karthik Varma.

Stock Details
Ltp: Rs 304.85

Industry P/E: 80.71

Mkt Cap: Rs 2,216.23 Cr

P/E: 49.42

EPS: 6.17

Sector: FMCG

Introduction: Eveready Industries is previously known as Union Carbide India

Ltd is the flagship company of B.M kaithan group. The brand Eveready has been
there since 1905. The company belongs to FMCG sector and it manufactures
Batteries, flashlights, electrolytic manganese dioxide and carbon arc. Despite of
economy being dull the company had made a turnover of Rs 1,153 Cr in FY 1314 V/s Rs 1.035 Cr in the previous FY.
Batteries: The Company is enjoying over 50% market share in Indian Battery
market and is having 75% market share in Indian flashlights market. Second
largest producer of carbon zinc batteries globally with an offtake of over 1.3
Billion batteries worldwide. Enjoys one of the highest brand recall and widest
product portfolio in Indias portable batteries industry.
Flashlights; Holds th of Indias organized flashlights market. Caters the light
needed for rural and urban India. Early movers of LED torches , now introducing
customers to Digi LED technology torches.
Financials:

Ratios:
Ratio
Current Ratio
Quick Ratio
Operating Profit
Margin
Gross Profit
Margin
Interest
Coverage Ratio
Total Asset
Turnover Ratios

FY 13-14
0.68
0.32
7.85

FY 12-13
0.61
0.36
6.31

FY 11-12
56
0.32
5.15

4.22

2.92

2.68

1.40

0.98

0.90

4.09

3.64

3.47

Decrease in the debt level is due to the increase in the

retention level. If we can look into the balance sheets the companys
reserves and surplus is increasing over the period , more over
companys ability to pay its obligations is a good sign. Companys
increase in the investments in it current assets is another good sign
about the company.

Recommendation: As the company is having a good market share in the

Countrys battery and flashlights market, moreover companys well
known brand is the added advantage for the increase in the sales. As the
companys investment in the current assets show that company is having
a well managed working capital, which in turn meeting its obligations.
As the current human life is electronic bounded there is a great demand
for the batteries in the remotes and other electronic gadgets. There are
many places in India are still in dark where there is a great need of
flashlights and I feel this demand will be inelastic. Since the companys
growing this could be a multibagger. The company has recently reached

its 52 week high of Rs 309.70. I will give a buy call and hold it for long
term.