Recent Price Performance and Market Comparison
Eveready Industries has outperformed the broader market and its sector peers in the short term. Over the past week, the stock gained 3.80%, significantly ahead of the Sensex’s 0.91% rise. Similarly, the one-month and year-to-date returns stand positive at 3.03% and 4.02% respectively, contrasting with the Sensex’s declines of 2.49% and 2.24% over the same periods. This recent momentum is further underscored by a three-day consecutive gain, during which the stock appreciated by 7.42%. Intraday, the share price touched a high of ₹356.05, marking a 7.8% increase from previous levels.
However, the longer-term picture is less encouraging. Over the past year, Eveready’s stock has declined by 1.73%, underperforming the Sensex’s 6.44% gain. The three-year and five-year returns of 3.02% and 62.28% respectively also lag slightly behind the benchmark indices, indicating persistent challenges in sustaining growth momentum.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Valuation and Operational Efficiency
One of the key drivers behind the recent price appreciation is the company’s attractive valuation metrics combined with strong management efficiency. Eveready Industries boasts a return on capital employed (ROCE) of 16.73%, signalling effective utilisation of capital to generate profits. The enterprise value to capital employed ratio stands at a modest 3.5, suggesting the stock is trading at a discount relative to its peers’ historical valuations. This valuation appeal is supported by an 18.6% rise in profits over the past year, despite the stock’s modest negative return during the same period. The price-to-earnings-growth (PEG) ratio of 1.5 further indicates a reasonable balance between valuation and earnings growth expectations.
From a technical perspective, the stock price is currently above its 5-day, 20-day, and 50-day moving averages, reinforcing the short-term bullish trend. However, it remains below the 100-day and 200-day moving averages, reflecting some caution among longer-term investors. Notably, the weighted average price suggests that a larger volume of shares traded closer to the day’s low, hinting at some resistance near higher price levels.
Investor Participation and Liquidity
Despite the price gains, investor participation appears to be waning. Delivery volume on 04 Feb dropped sharply by 61.25% compared to the five-day average, signalling reduced conviction among shareholders. Nevertheless, liquidity remains adequate for moderate trade sizes, with the stock’s traded value supporting transactions up to ₹0.06 crore based on 2% of the five-day average traded value.
Challenges Tempering Optimism
While the recent price rise reflects optimism, several fundamental concerns persist. The company’s ability to service debt is limited, with a high Debt to EBITDA ratio of 2.51 times, raising questions about financial leverage and risk. Additionally, operating profit has contracted at an annual rate of 3.5% over the last five years, indicating poor long-term growth prospects. The December 2025 quarter results were flat, offering little impetus for sustained upward momentum.
Moreover, Eveready Industries has consistently underperformed the benchmark indices over the past three years, including the BSE500, which it has lagged in each of the last three annual periods. This underperformance, coupled with the stock’s negative one-year return, suggests that despite short-term gains, investors should remain cautious about the company’s longer-term trajectory.
Holding Eveready Inds. from FMCG? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Conclusion: A Stock on the Rise but Not Without Risks
In summary, Eveready Industries India Ltd’s share price rise on 05-Feb is driven by a combination of attractive valuation, improving profit metrics, and short-term technical strength. The stock’s outperformance relative to the Sensex and sector peers in recent weeks highlights renewed investor interest. However, the company’s high debt levels, subdued long-term profit growth, and consistent underperformance against benchmarks temper enthusiasm and warrant caution.
Investors considering Eveready Industries should weigh the current positive momentum against these underlying challenges. While the stock offers potential value and has demonstrated resilience in the near term, its financial leverage and growth concerns suggest that a measured approach is prudent.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
