1. 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 13-
14 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 India’s portable batteries industry.
Flashlights; Holds ¾ th of India’s 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:

2. Ratios:
Ratio FY 13-14 FY 12-13 FY 11-12
Current Ratio 0.68 0.61 56
Quick Ratio 0.32 0.36 0.32
Operating Profit
Margin
7.85 6.31 5.15
Gross Profit
Margin
4.22 2.92 2.68
Interest
Coverage Ratio
1.40 0.98 0.90
Total Asset
Turnover Ratios
4.09 3.64 3.47

3. Decrease in the debt level is due to the increase in the
retention level. If we can look into the balance sheets the company’s
reserves and surplus is increasing over the period , more over
company’s ability to pay its obligations is a good sign. Company’s
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
Country’s battery and flashlights market, moreover company’s well
known brand is the added advantage for the increase in the sales. As the
company’s 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 company’s 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.