Eveready Inds spurts after Burman family ups stake

Eveready Industries hit an upper circuit of 10% at Rs 88.90 on the BSE after the Burman family, promoters of Dabur India, hiked stake in the company via open market on Tuesday (14 July).

The Burman family has picked up 8.48% stake in Kolkata-based Eveready Industries, the country's largest dry cell batter maker.

The transactions were initiated through Guardian Advisors, which manages the investment for the Burmans. Guardian Advisors transacted on behalf of M.B.Finmart, Puran Associates, VIC Enterprises, Chowdry Associates and Gyan Enterprises. These companies are owned by various members of the Burman family.

Post this acquisition, the Burman family's stake in Eveready Industries stands increased to 19.84% from 11.35% earlier.

On the BSE, the counter clocked a volume of 13.72 lakh shares as against its average trading volume of 14,942 shares in the past one quarter. Over 93.24% of the total traded quantity is marked for delivery.

On the NSE, the scrip hit a 10% upper circuit at Rs 89.10. The counter clocked a volume of 20.61 lakh shares as compared with its average trading volume of 2.27 lakh shares in the past one quarter.

The battery maker's consolidated net profit surged to Rs 63.07 crore in Q4 March 2020, higher than net profit of Rs 4.54 crore in Q4 March 2019. Consolidated net sales declined 32.4% to Rs 224.08 crore in Q4 FY20 over Q4 FY19. It reported exceptional gain of Rs 62.03 crore on sale of land at Hyderabad.

The company's profitability was aided by rise in gross margin in the core segments of batteries and flashlights and improvement in operating margin due to additional cost savings measures. The discontinuance of the packaged tea business further helped the company in improving margins and releasing working capital.

Eveready Industries India is engaged in the business of marketing of fast-moving consumer goods (FMCG), such as dry cell batteries, rechargeable batteries, flashlights, packet tea and general lighting products. The firm also distributes a range of electrical products.

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