Buy Eveready Industries; target of Rs 458: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's research report on Eveready Industries

EVRIN ’s revenue  rose  12.2% YoY to INR3 ,696m  (est. of INR3,792 m) in 3 QFY18 . EBITDA margin shrunk 144bp YoY to 9.3 % (est. of 10.0%), while EBITDA fell 2.9 % YoY to  INR342 m (est. of INR375 m) due to a significant rise  of 200bp in other expenses ( led by INR 100m ad spends during the festive season in the appliances and lighting segment) .Consequently, adjusted PAT grew 23% YoY to INR209 m, lower than our est imate of INR253m. Turnover in battery and flashlights remained flat, while that in  LED segment grew by 33% YoY.

Outlook

The asset monetization phase should drive RoCE to 1 2% by FY20 from meager 5% in FY17. Based on the cut in EBITDA, we lower our TP to INR 820 (INR910 earlier), assigning 15x Dec’19 EV/EBITDA. Maintain Buy.For all recommendations report, click here

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