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Eveready Industries (India) Ltd. Stock Analysis

Small Cap
Evaluated by 1297 users | BSE: 531508 | NSE: EVEREADY |
Batteries
Eveready Industries India incorporated in 1934, is a well-known name in dry cell batteries segment. Erstwhile the company was a subsidiary of Union Carbide Corporation, US that later was acquired by B M Khaitan and the Williamson Magor group of companies.Besides dry cell batteries, the company...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Eveready Industries (India) Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 2.34%-1.17%3.8%4.4%8.84%14.48%24.16%12.59%14.33%14.29%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,0741,1001,0351,1531,2791,3241,3571,4561,5071,221
Y-o-Y Gr. Rt.-2.4%-5.9%11.4%10.9%3.5%2.5%7.3%3.5%-19%
Adjusted EPS (Rs.) -0.28-5.160.641.126.889.5712.876.818.449.98
Y-o-Y Gr. Rt.-NANA75%514.3%39.1%34.5%-47.1%23.9%18.3%
Book Value per Share (Rs.) 80.4368.7980.3681.6585.9328.3839.8347.1551.7176.43
Adjusted Net Profit -2.1-37.54.78.15069.693.649.561.372.6
Net Op. Cash Flow (Rs. Cr.) 64.737.464.493.171.712582.180.870.1133
Debt to Cash Flow from Ops 5.39.944.292.423.181.612.633.275.822.77
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Eveready Industries (India) Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 1.4%-0.9%-3.5%-19%
Adjusted EPS NA7.7%-8.1%18.3%
Book Value per Share -0.6-2.324.347.8
Share Price 22.7% -9.3% -26% 228.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) -0.33-6.710.861.388.2216.7437.7515.6617.0715.58
Operating Profit Margin (%) 6.113.656.357.869.859.329.847.197.9910.48
Net Profit Margin (%) -0.19-3.410.450.713.915.266.893.44.136.04
Debt to Equity 0.590.740.470.380.360.970.750.771.090.66
Working Capital Days 132126122107105111122151198285
Cash Conversion Cycle 25313131251624221720
Entity Percentage Holding
Promoters 7.26%
Institutions 2.75%
Non-Institutions 89.99%
Pledged *45.4245.1145.1149.8088.5184.5482.6079.2778.4934.34
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Eveready Industries (India) Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Eveready Industries (India) Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Eveready Industries (India) Ltd.'s performance infers:

Eveready Industries (India) Ltd. earnings have grown by 7.7%, whereas share price has depreciated -9.3% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Eveready Industries (India) Ltd. share prices over the last 10 years. Here is what we found out:

Eveready Industries (India) Ltd. share price has depreciated 12.3% annually over the past ten years.

Eveready Industries India incorporated in 1934, is a well-known name in dry cell batteries segment. Erstwhile the company was a subsidiary of Union Carbide Corporation, US that later was acquired by B M Khaitan and the Williamson Magor group of companies.

Besides dry cell batteries, the company also manufactures flashlights (torches), mosquito repellant and packet tea.

In 1995, company formed a JV with Ralston Purina Overseas Battery Company of US to establish Energizer India- a private

Eveready Industries India incorporated in 1934, is a well-known name in dry cell batteries segment. Erstwhile the company was a subsidiary of Union Carbide Corporation, US that later was acquired by B M Khaitan and the Williamson Magor group of companies.

Besides dry cell batteries, the company also manufactures flashlights (torches), mosquito repellant and packet tea.

In 1995, company formed a JV with Ralston Purina Overseas Battery Company of US to establish Energizer India- a private limited company that would be engaged in manufacturing of reowned Energizer brand of alkaline batteries in India. The same year, in order to develop rechargeable Ni-Cd and Ni-Mg batteries in India, company entered a MoU with Gold Peak Industries of Hong Kong.

In 1999-2000 the company established a new poly sleeve jacketed battery line at Camperdown Works in Calcutta.

Later company started manufacturing batteries for watches. In April 2004 Eveready Industries India was demerged into two separate companies namely McLeod Russel India and Eveready Industries India. Eveready has the second largest retail distribution network in India.

Later with an investment of Rs.60 crores company established a unit situated in Uttaranchal to manufacture of dry cell batteries with a capacity of 40 crore pieces per annum, this project became operational in 2006.

Today, the company is largest selling brand of dry cell batteries and flashlights (torches), commanding market shares of about 46% and 85% respectively in India.

Products

Dry Cell Batteries- Under this company manufactures carbon zinc batteries, rechargeable batteries and alkaline batteries. The company markets these batteries under the brand name 'Eveready'.

Flashlights- Eveready Industries is the largest manufacturer of flashlights in South Asia. Under this company has launched models namely A1, Spectra, Satin, Prakash, Delight, Vijeta, Tango, Cruiser, DL01, DL02 to name a few.

Tea-Company manufactures tea and markets the same under the brand name ‘Tez’.

Mosquito Repellent- Company manufactures mosquito repellent and markets it under brand name ‘Poweron’.

In the year 2007, the company entered into a sales and distribution tie-up with Phoenix Lamps for selling CFLs (Compact Fluorescent Lamps) under the brand name Eveready Halonix. Phoenix Lamps. This JV required an investment of US$ 40 million with 4 plants having a production capacity of over 130 million lamps a year.

New Development

Eveready Industries India plans to increase it product portfolio in future. The company is conducting test marketing of dishwash detergent and after successful completion it will launch the product.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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