Buy Eveready Industries India; target of Rs 322: Kotak Securities

Kotak Securities' research report on Eveready Industries India

We interacted with the management of EIIL to get perspective on the company's operations-core business and new initiatives. Following the immense disappointment in the Q4FY18 result when the company reported EBITDA loss, management is now able to reassure (during the course of our interaction) that most of the challenges are close to get sorted and situation across verticals have largely stabilized now.

Outlook
Maintain FY19/20 forecasts and DCF assumptions, we recommend 'BUY' with unchanged target price of Rs 322. Despite attractive upside potential, we expect stock to remain under pressure in the short term, susceptible to 1/ further developments in the CCI event and 2/ reversal in sales momentum.

For all recommendations report, click here