Eveready charges up on the bourses after board member Utsav Parekh buys EIL shares from open market!

The smallcap battery manufacturer held its 87th Annual General Meeting yesterday.

The shares of Eveready Industries Ltd, an S&P BSE SmallCap company that manufactures dry cell batteries and flashlight torches are rallying on the bourses today.

The company held its 87th Annual General Meeting yesterday, on 29 June 2022. Post the meeting, the company’s share price has appreciated by over 5%. As per the company’s press release, three resolutions of the AGM, which were ordinary in nature, have been passed by the requisite majority.

As per the latest information, Utsav Parekh, who is a board member, bought a cumulative 1 lakh shares of the company from the open market. He made a purchase of 50,000 shares each on 2 occasions, on 27 June and 29 June, respectively.

A prominent stock broker, Utsav Parekh joined the board of Eveready Industries Ltd (EIL) in February last year, as a non-executive and non-independent director. Last month, the Burman family of Dabur, who is the largest shareholder of the company, made an open offer to the public shareholders of EIL. The offer pertained to the acquisition of an additional 26% stake in the dry cell battery maker for a consideration of Rs 604.75 crore after receiving the approval from market regulator, Securities and Exchange Board of India (SEBI).

Looking at the financials, in FY22, the company’s topline declined 3.5% YoY to Rs 1,211.46 crore. Despite this, the company’s bottom line stood at a profit of Rs 47.84 crore from a loss of Rs 307 crore in the previous financial year.

On the valuations front, the company is currently trading at a PE of 47.46x against the industry PE of 18.18x. In FY22, the company delivered an ROE and ROCE of 17.88% and 14.72%, respectively.

At 11.21 am, the shares of Eveready Industries Ltd were trading at Rs 319.60 apiece, an increase of 5.34% from the previous closing price of Rs 303.40 on BSE. The shares of the company have a 52-week high and low of Rs 413.30 and Rs 255.45, respectively on BSE.