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: FMCGIntroduction: 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 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 FY 13-14FY 12-13FY 11-12

Current Ratio 0.680.6156

Quick Ratio 0.320.360.32

Operating Profit Margin 7.856.315.15

Gross Profit Margin4.222.922.68

Interest Coverage Ratio1.400.980.90

Total Asset Turnover Ratios4.093.643.47

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.