NSEI:EON

Stock Analysis Report

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Executive Summary

Eon Electric Limited manufactures, markets, and sells electrical products in India. More Details


Snowflake Analysis

Fair value with imperfect balance sheet.

Share Price & News

How has Eon Electric's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EON's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.4%

EON

1.5%

IN Electrical

1.3%

IN Market


1 Year Return

-56.7%

EON

-17.1%

IN Electrical

4.3%

IN Market

Return vs Industry: EON underperformed the Indian Electrical industry which returned -10.3% over the past year.

Return vs Market: EON underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

EONIndustryMarket
7 Day-4.4%1.5%1.3%
30 Day-13.9%-0.3%1.8%
90 Day-5.8%11.4%13.8%
1 Year-56.7%-56.7%-15.0%-17.1%6.3%4.3%
3 Year-91.9%-91.9%-22.8%-26.8%4.4%-0.5%
5 Year-81.3%-81.3%-11.3%-16.7%46.0%35.1%

Price Volatility Vs. Market

How volatile is Eon Electric's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eon Electric undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EON (₹6.5) is trading below our estimate of fair value (₹36.27)

Significantly Below Fair Value: EON is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EON is unprofitable, so we can't compare its PE Ratio to the IN Electrical industry average.

PE vs Market: EON is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EON is good value based on its PB Ratio (0.1x) compared to the IN Electrical industry average (0.7x).


Next Steps

Future Growth

How is Eon Electric forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

28.9%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Eon Electric has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Eon Electric performed over the past 5 years?

-17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EON is currently unprofitable.

Growing Profit Margin: EON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EON is unprofitable, and losses have increased over the past 5 years at a rate of 17% per year.

Accelerating Growth: Unable to compare EON's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EON is unprofitable, making it difficult to compare its past year earnings growth to the Electrical industry (-13.6%).


Return on Equity

High ROE: EON has a negative Return on Equity (-72.97%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eon Electric's financial position?


Financial Position Analysis

Short Term Liabilities: EON's short term assets (₹1.1B) exceed its short term liabilities (₹621.6M).

Long Term Liabilities: EON's short term assets (₹1.1B) exceed its long term liabilities (₹80.3M).


Debt to Equity History and Analysis

Debt Level: EON's debt to equity ratio (43.3%) is considered high.

Reducing Debt: EON's debt to equity ratio has increased from 39.8% to 43.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if EON has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EON has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Eon Electric current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EON's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EON's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EON's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EON's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EON's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average board tenure


CEO

Vinay Mahendru (58 yo)

2.92yrs

Tenure

₹8,650,800

Compensation

Mr. Vinay Mahendru served as Compliance Officer of Eon Electric Limited from October 19, 2015 to May 23, 2016. Mr. Mahendru has been an Whole-Time Director of Eon Electric Limited since June 24, 2005 and a ...


CEO Compensation Analysis

Compensation vs Market: Vinay's total compensation ($USD117.52K) is above average for companies of similar size in the Indian market ($USD48.91K).

Compensation vs Earnings: Vinay's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Vinay Mahendru
Joint MD & Whole-Time Director2.92yrs₹8.65m3.41%
₹ 3.8m
Vivek Mahendru
Joint MD & Whole-Time Director8.08yrs₹8.65m3.49%
₹ 3.9m
Ashok Gupta
Non-Executive Independent Director1.42yrsno datano data
Ashish Bansal
Non-Executive Independent Director1.42yrsno datano data
Shruti Kukreti
Independent Non- Executive Director0.50yrno datano data

1.4yrs

Average Tenure

58yo

Average Age

Experienced Board: EON's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Eon Electric Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eon Electric Limited
  • Ticker: EON
  • Exchange: NSEI
  • Founded: 1958
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: ₹112.401m
  • Shares outstanding: 16.90m
  • Website: https://www.eonelectric.com

Number of Employees


Location

  • Eon Electric Limited
  • 208, Hemkunt Tower
  • 98, Nehru Place
  • New Delhi
  • Delhi
  • 110019
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532658BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2005
EONNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2005

Biography

Eon Electric Limited manufactures, markets, and sells electrical products in India. It operates through Cable and Wires, Lighting, Electrical Consumer Durables, and Others segments. The company offers cabl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:41
End of Day Share Price2020/09/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.