NSEI:EVEREADY

Stock Analysis Report

Eveready Industries India

Executive Summary

Eveready Industries India Limited, together with its subsidiaries, manufactures and markets batteries, flashlights, and general lighting and electrical products in India.

Rewards

Trading at 56.9% below its fair value

Risk Analysis

Earnings have declined by -12.17% per year over past 5 years

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 2 more risks


Snowflake Analysis

Good value with imperfect balance sheet.

Share Price & News

How has Eveready Industries India's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.0%

EVEREADY

-0.3%

IN Household Products

-2.5%

IN Market


1 Year Return

-72.2%

EVEREADY

11.9%

IN Household Products

5.0%

IN Market

Return vs Industry: EVEREADY underperformed the Indian Household Products industry which returned 11.9% over the past year.

Return vs Market: EVEREADY underperformed the Indian Market which returned 5% over the past year.


Shareholder returns

EVEREADYIndustryMarket
7 Day-1.0%-0.3%-2.5%
30 Day-2.8%-3.0%-1.3%
90 Day-21.0%10.9%5.7%
1 Year-72.2%-72.2%13.3%11.9%7.0%5.0%
3 Year-75.5%-75.6%145.9%136.1%30.3%23.4%
5 Year-69.4%-69.8%178.8%157.8%42.1%29.3%

Price Volatility Vs. Market

How volatile is Eveready Industries India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Eveready Industries India 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: EVEREADY (₹52.95) is trading below our estimate of fair value (₹122.79)

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


Price To Earnings Ratio

PE vs Industry: EVEREADY is good value based on its PE Ratio (13.1x) compared to the Household Products industry average (26x).

PE vs Market: EVEREADY is poor value based on its PE Ratio (13.1x) compared to the Indian market (12.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EVEREADY is good value based on its PB Ratio (1x) compared to the IN Household Products industry average (1.2x).


Next Steps

Future Growth

How is Eveready Industries India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.2%

Forecasted Household 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 Eveready Industries India 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 Eveready Industries India performed over the past 5 years?

-12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVEREADY has a large one-off loss of ₹166.8M impacting its September 30 2019 financial results.

Growing Profit Margin: EVEREADY's current net profit margins (2.1%) are lower than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: EVEREADY's earnings have declined by -12.2% per year over the past 5 years.

Accelerating Growth: EVEREADY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EVEREADY had negative earnings growth (-41.4%) over the past year, making it difficult to compare to the Household Products industry average (-26.8%).


Return on Equity

High ROE: EVEREADY's Return on Equity (7.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Eveready Industries India's financial position?


Financial Position Analysis

Short Term Liabilities: EVEREADY's short term assets (₹8.6B) exceed its short term liabilities (₹7.2B).

Long Term Liabilities: EVEREADY's short term assets (₹8.6B) exceed its long term liabilities (₹2.1B).


Debt to Equity History and Analysis

Debt Level: EVEREADY's debt to equity ratio (126.4%) is considered high.

Reducing Debt: EVEREADY's debt to equity ratio has increased from 37.2% to 126.4% over the past 5 years.

Debt Coverage: EVEREADY's debt is not well covered by operating cash flow (18.7%).

Interest Coverage: EVEREADY's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: EVEREADY has a high level of physical assets or inventory.

Debt Coverage by Assets: EVEREADY's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Eveready Industries India's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage1.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: EVEREADY is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of Eveready Industries India's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Amritanshu Khaitan (37yo)

5.6yrs

Tenure

₹41,171,734

Compensation

Mr. Amritanshu K. Khaitan, B.Com (Hons.), MBA (London), has been the Managing Director of Eveready Industries India Limited since May 5, 2014. Mr. Khaitan serves as an Executive Director of Eveready Indust ...


CEO Compensation Analysis

Compensation vs Market: Amritanshu's total compensation ($USD579.62K) is above average for companies of similar size in the Indian market ($USD50.68K).

Compensation vs Earnings: Amritanshu's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.6yrs

Average Tenure

47yo

Average Age

Experienced Management: EVEREADY's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

0.6yrs

Average Tenure

58yo

Average Age

Experienced Board: EVEREADY's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Sell₹4,581,66625 Oct 19
Zen Industrial Services Ltd
EntityCompany
Shares62,000
Max Price₹85.00
Buy₹239,44925 Oct 19
Zen Industrial Services Ltd
EntityCompany
Shares5,000
Max Price₹47.89

Ownership Breakdown

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


Management Team

  • S. Mukherjee (44yo)

    President

    • Tenure: 0yrs
    • Compensation: ₹2.81m
  • Tehnaz Punwani

    VP of Legal

    • Tenure: 0yrs
  • Amritanshu Khaitan (37yo)

    MD & Executive Director

    • Tenure: 5.6yrs
    • Compensation: ₹41.17m
  • Indranil Chowdhury (50yo)

    Joint Chief Financial Officer

    • Tenure: 0.6yrs
  • Bibhu Saha (53yo)

    Joint Chief Financial Officer

    • Tenure: 0.6yrs

Board Members

  • AK Khaitan (51yo)

    Non-Executive Vice Chairman

    • Tenure: 0yrs
    • Compensation: ₹340.00k
  • Roshan Joseph (68yo)

    Additional Independent Director

    • Tenure: 0.2yrs
    • Compensation: ₹1.46m
  • Kamal Kishore Jani (65yo)

    Independent Director

    • Tenure: 0.4yrs
  • Amritanshu Khaitan (37yo)

    MD & Executive Director

    • Tenure: 5.6yrs
    • Compensation: ₹41.17m
  • Arundhuti Dhar (46yo)

    Non-Executive Independent Director

    • Tenure: 0.6yrs
  • Mahesh Shah (66yo)

    Non-Executive Independent Director

    • Tenure: 0.6yrs

Company Information

Eveready Industries India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eveready Industries India Limited
  • Ticker: EVEREADY
  • Exchange: NSEI
  • Founded: 1905
  • Industry: Household Products
  • Sector: Household
  • Market Cap: ₹3.900b
  • Shares outstanding: 72.69m
  • Website: https://www.evereadyindia.com

Number of Employees


Location

  • Eveready Industries India Limited
  • 2, Rainey Park
  • Kolkata
  • West Bengal
  • 700019
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531508BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1996
EVEREADYNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1996

Biography

Eveready Industries India Limited, together with its subsidiaries, manufactures and markets batteries, flashlights, and general lighting and electrical products in India. It offers various batteries compri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 12:45
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.