Eveready Industries gains after hiking batteries prices

Eveready Industries India rose 1.14% to Rs 44.35at 12:51 IST on BSE after the company announced a hike in the prices of its batteries.

The company made the announcement during trading hours today, 20 March 2014.

Meanwhile, the BSE Sensex was down 87.74 points, or 0.40%, to 21,745.12.

On BSE, so far 1.40 lakh shares were traded in the counter, compared with an average volume of 65,748 shares in the past one quarter.

The stock hit a high of Rs 45.50 and a low of Rs 43.70 so far during the day. The stock hit a 52-week high of Rs 46.35 on 12 March 2014. The stock hit a 52-week low of Rs 14.05 on 7 August 2013.

The stock had outperformed the market over the past one month till 19 March 2014, rising 7.48% compared with the Sensex's 5.36% rise. The scrip had also outperformed the market in past one quarter, rising 25.46% as against Sensex's 5.43% rise.

The small-cap company has an equity capital of Rs 36.34 crore. Face value per share is Rs 5.

According to Mr Deepak Khaitan, Vice Chairman of Eveready, "A long cycle of continuous upward trend in cost of materials and overhead expenses had adversely impacted the cost of batteries. This necessitates another round of price increase to protect margins. Realization will go up by 3% to 8% - through increase of MRP's from April 2014 of pencil size batteries by Rs 5 to Rs 10 per strip of 10 batteries and for all D size batteries by Rs 10 per box of 20 batteries.

Eveready Industries India's net profit surged 151.7% to Rs 4.53 crore on 12.5% increase in net sales to Rs 296.45 crore in Q3 December 2013 over Q3 December 2012.

Eveready is the market leader of dry cell batteries selling more than 1.2 billion units annually. Apart from dry cell batteries, Eveready is also the market leader in flashlights selling in excess of 26 million units per year Eveready also markets rechargeable lanterns and devices, CFL, GLS lamps and other lighting products and packet tea. Eveready has an extensive distribution network of 4000 dealers reaching all the way upto 5000 population towns.

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