Eveready Inds. (EVEREADY)
Slow GrowerFairStock Score: 25/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹356.5 |
| Market Cap | ₹2,591.3 Cr |
| P/E Ratio | 14.53 |
| ROCE | 16.96% |
| ROE | 9.2% |
| Dividend Yield | 0.7% |
| Profit Growth | 22.42% |
| Debt/Equity | 0.32 |
| Sales Growth | 8.33% |
| Promoter Holding | 43.2% |
| 52-Week Range | ₹259.65 — ₹457.65 |
| Sector | Household Products |
| Book Value | ₹85.7 |
Strengths
- Recognized brand in Indian household products with 43.20% promoter holding.
- ROCE of 16.96% suggests reasonable capital efficiency.
- Piotroski F-score of 7/9 points to sound recent fundamentals.
- Sales growth of 10.12% shows demand traction.
- Debt/equity of 0.75 is not excessive for this stage.
Concerns
- P/E of 31.86 and P/B of 5.39 are expensive for a business earning 9.20% ROE.
- Profit growth of just 0.53% despite 10.12% sales growth indicates margin pressure.
- Latest quarter net profit of ₹7 Cr on ₹367 Cr sales implies under 2% net margin.
- PEG of 4.13 and dividend yield of 0.45% leave little margin of safety for retail investors.
AI Analysis
Eveready is a familiar name in Indian household products, and there is some comfort in a known brand. But investing is about price versus value. At ₹326.35, the market is asking ₹2,407 Cr. For that I get a company with book value of ₹60.60, ROE of 9.20%, and a profit machine that is sputtering. Sales rose 10.12%, yet profit growth was a meagre 0.53%. The latest quarter tells the story: ₹367 Cr of sales produced just ₹7 Cr of net profit, a less than 2% margin. That is not a strong consumer franchise; it is a low-margin business with high valuation. The P/E of 31.86 and P/B of 5.39 leave no margin of safety. A PEG of 4.13 says the modest growth is not cheap. Debt/equity of 0.75 is manageable but not conservative, and the dividend yield of 0.45% is barely worth mentioning. To be fair, ROCE of 16.96% shows decent capital use, and the Piotroski F-score of 7/9 indicates no immediate red flags. Promoter holding of 43.20% is adequate. But I have seen many average businesses dressed up by a strong quarter or a falling price. The stock is down from ₹475 to ₹326, but a lower price is not the same as a bargain. If profit cannot grow faster than this, the market cap is not justified. I would need a significantly lower price, much better margins, and proof that sales growth is converting into earnings before I would call Eveready an investment. For now, it is a slow grower at a growth-stock price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer