Target: ₹430
CMP: ₹358.55
We initiate coverage on Eveready Industries India Ltd. with a BUY rating and a target price of ₹430 (30x FY25 PE). We believe that EIIL is set to grow itsrevenue by 9 per cent and improve its PAT margins from about 2 per cent in FY23 to around 7 per cent in FY25, because EIIL is set to focus on premiumisation and improving its presence in the alkaline batteries and rechargeable flashlight segment.
The Burman family, with its renowned history and track record of success, brings a wealth of experience and leadership to EIIL. Over the years, the Burman family’s leadership has been instrumental in steering Dabur India Ltd (Dabur) through various challenges and transforming it into a global FMCG powerhouse.
The Company is endeavoring to transform itself from several years of revenue stagnation to a growth-oriented trajectory, with a primary focus on enhancing profitability. The management is guiding to double the revenue in 3-4 years. The growth will be driven by a change in the product mix in the battery and flashlight segments.
EIIL has a strong distribution network spanning over 4 Mn touchpoints, reaching the retail trade from urban centres to deep into the interiors of the country.