Eveready Industries hits two year high

The stock has rallied 33% in past one month after reporting robust net profit growth in September quarter.

Eveready Industries India is trading higher by 5% to Rs 29.85 on back of heavy volumes on the bourses. The stock opened at Rs 28.30 and touched high of Rs 30.35, also its highest level since November 2011 on the BSE. A combined 410,479 shares have already changed hands on the counter till 1050 hours against an average sub 500,000 shares that were traded daily in past two weeks on the NSE and BSE.

Shares of small-sized non-durable household products maker has rallied 33% in past one month after reporting roust net profit growth for the quarter ended September 2013. The benchmark S&P BSE Sensex has fallen 1.9% during the month.

The company had reported 77% year-on-year (yoy) jump in net profit at Rs 3.70 crore for September quarter against Rs 2.09 crore in the same quarter year ago.

Eveready Industries had posted a profit of Rs 7.83 crore for H1FY14, on the back of strong operational performance. The company had clocked in a net profit of Rs 5.08 crore in the entire previous fiscal.

The company said the market has absorbed the recent price increases and outlook for batteries and flashlights is stable and poised for growth.

The company is expecting to reduce its borrowings substantially during the current financial year, which will have positive impact on future profitability through lower interest costs.