Synopsis: Battery manufacturing company has started a new manufacturing unit to expand its presence in the premium battery segment, improve local production, and support future growth in demand.
The shares of this small cap company majorly engaged in manufacturing dry cell batteries offering products such as batteries, flashlights, lighting solutions, and home appliances were in focus after commissioning India’s only alkaline battery with a production capacity of 360 million units
With the market capitalization of Rs. 2,457 Crores, the shares of Eveready Industries India Ltd were trading at around Rs. 338 per share which is 28.8 percent discount from its 52 weeks high Rs. 475 per share and is trading at a P/E of 32.5 whereas industry P/E stands at 32.4
What is the NEWS
Eveready Industries India Limited has commissioned a new alkaline battery manufacturing plant in Jammu with an investment of around Rs. 200 crore, marking a significant step towards expanding its domestic production. The facility has an annual installed capacity of about 456 million batteries, with a peak production capacity of around 360 million units. This scale-up is important as it allows the company to meet the growing demand for high-performance alkaline batteries, especially with increasing usage of power-intensive devices.
The company already holds a strong position in the dry cell battery market with over 52 percent market share, and its alkaline segment is steadily approaching a 20 percent share. With this new plant, Eveready aims to further strengthen its presence in the premium battery category, where margins are typically better. The plant will also help reduce dependence on imports, improve supply chain stability, and enhance operational efficiency through economies of scale.
From a broader perspective, the facility is expected to generate over 500 direct and indirect jobs at full capacity, contributing to regional economic growth. It also supports government initiatives like ‘Make in India’ and ‘Atmanirbhar Bharat’ by boosting local manufacturing. On the sustainability front, the unit includes a 1 MW rooftop solar installation with an annual generation capacity of about 1.2 million units, along with a rainwater harvesting system of 275 KLD and a zero-discharge design.
With six manufacturing units across India and a reach of over 250 million households, Eveready is using this expansion to strengthen its supply capabilities, support premiumisation, and position itself for both domestic growth and opportunities in international markets.
About the company and Financials
Eveready Industries India Limited majorly engaged in manufacturing dry cell batteries offering products such as batteries, flashlights, lighting solutions, and home appliances. The lighting portfolio covers consumer and professional segments, including bulbs, battens, panels, luminaires, emergency LEDs, and festive lighting. It also offers downlights, spotlights, wiring accessories, and MCBs. Professional solutions include architectural, commercial, industrial, façade, street, and flood lighting, along with outdoor landscape and architectural lighting, with over 34 million LED lights sold annually.
Year on Year analysis: Revenue from operations has increased from Rs. 333 Crores to Rs. 367 Crores, up 10 percent. Operating profit has increased from Rs. 29.22 Crores to Rs. 33 Crores, up 13 percent and net profit has decreased from Rs. 13.1 Crores to Rs. 7.45 Crores, down 43 percent
Quarter on Quarter analysis: Revenue from operations has decreased from Rs. 386.78 Crores to Rs. 367.24 Crores, down 5 percent. Operating profit has decreased from Rs. 49.10 Crores to Rs. 33 Crores, down 32.7 percent and net loss has turned into a net profit of Rs. 7.45 Crores from net loss of Rs. 7.91 Crores
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