Equity Watch

Everest Industries caters to the fastest growing sector of Indian Economy -Construction

In 1934, Everest Industries earlier known as Eternit Everest started commercial production of Corrugated Roofing Sheets.73 years back the company was formed in the name and style of Asbestos Cement Ltd. a joint venture of ACC and Turner & Nowall Ltd. UK.Later on Turner and Nowall sold its stake to Belgian Eternit Group and that’s why the name was changed to Eternit .The company was the first to set up Asbestos Cement plant in India.Millions of families in India have Everest roof over their heads. 

Everest caters to the fastest growing sector of Indian economy :

a) Housing and Industials      and      b) Rural Sector

 Today, Everest has 5 major production facilities, 300 retail outlets in India, and its exports to countries in  Europe,Africa, and Asia are fast growing . Everest is driven by Research and has a full fledged building materials Research Centre in Bangalore and a tie-up with T & N Material Research Ltd. UK.

Recently, the Company has announced that it is entering into the business of Design, Manufacturing, Supply and erection of Pre-engineered Steel Buildings. Pre-engineered steel buildings are accepted as an alternate to conventional buildings in the construction sector. Most of the industrial, infrastructure and commercial buildings are being made using this technology which saves lot of construction time. This technology is fast, efficient and cost effective compared to conventional building methods. Company claims that  during market seed programme, acceptance has been phenomenal across all segments in India. This business is in rapid growth mode and this concept is globally accepted. There is a huge demand and supply gap at present and which will exist for quite sometime. Also the market size is constantly and rapidly growing as more and more people are converting from conventional buildings to steel Pre-engineered buildings.The Company has been in the business of providing building solutions and products for over 7 decades in India and is regarded as the pioneer in this business and has built up a premium branding over a period of time. This business will provide synergy to its current operations.For undertaking this business, the Company has commenced the setting up of its first plant at Bhagwanpur at Roorkee (Uttarakhand), which will be followed up by other Plants based on market growth.

On the Financial front although company’s top line has grown by 20 % but PAT has shown a downward trend.The most probable reason is company’s investment in R & D to develop the new line of business of pre-engineered buildings which will pay off in the next few years.

 Scrip Code : 508906    Company Name : Everest Industries Ltd

Type Audited Audited Audited Audited
Date Begin 01 Apr 06 01 Apr 05 01 Apr 04 01 Apr 03
Date End 31 Mar 07 31 Mar 06 31 Mar 05 31 Mar 04
Description Value(Rs. million)
Net Sales 3037.7 2530.6 2274.7 1992.5
Other Income 30.4 12.6 21.8 18.2
Total Income 3068.1 2543.2 2296.5 2010.7
Expenditure -2773.6 -2119.8 -1944.7 -1752.1
Operating Profit 294.5 423.4 351.8 258.6
Interest -27.2 -13.7 -5.3 -4.4
Gross Profit 267.3 409.7 346.5 254.2
Depreciation -89.1 -74.6 -57 -58.4
Profit before Tax 178.2 335.1 289.5 195.8
Tax -61.6 -115.7 -98 -117.8
Profit after Tax 116.6 219.4 191.6 78
Extraordinary Items 91.9 517.7
Net Profit 116.6 311.3 191.6 595.7
Equity Capital 148 148 148 148
Reserves 1197.1 1149.8 1042.7 891.2
EPS 7.88 21.03 12.94 40.25
Nos. of Shares – Non Promoters 7386550 7386550 3549990 3549990
Percent of Shares – Non Promoters 49.91 49.91 23.99 23.99
Result Type A

financials reproduced from BSEINDIA

 

Company’s equity capital is Rs.14.88 crores and based on Last year EPS of Rs. 7.88 , CMP of Rs. 115 is discounted  15 times  ( P/E of 15 ).It is expected that the Company’s top line will grow to Rs. 1000 crores by 2010 giving an average growth of 100% in the next two years. Growth in PAT during the next few years can also be close to 100%. During 2009 when the company celebrates its 75th year of inception,its expected that  the company shall reward the share-holders as it has done during 2004 with dividend of 325% and  Bonus shares.

Buy with 2 years HOLD is recommended 

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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9 thoughts on “Everest Industries caters to the fastest growing sector of Indian Economy -Construction

  1. Hello Ashok

    This is Ravi from usa.Found your website through moneycontrol website.I was really happy to see ur recomends.It’s really good analysis.I really appriciate your time and hard work to post like this.Keep up your good work.Once again thanks and have good day

    Ravi

    Like

  2. Hi Ravi,
    I am afraid Confidence Petro has risen too fast too soon, that fresh entry at this level is not recommended. However you may safely enter again if you so wish at lower levels of less than Rs. 20
    Cheers
    Ashok

    Like

  3. Kalpesh Pandya says:

    Ashok,

    Thanks for your recommandation of Facor, BEEYU and marson. Good profit in all of them. I wanted to contact you and sent a mail to the mail id mention on this site but mail was bounced number of times. Could you please give me alternate mail id so that i can contact you.

    Thanks again,
    Kalpesh

    Like

  4. Ankur Vohra says:

    Everest Industries-Future Prospects

    Sir,
    I invested in Everest Industries based on your views and my purchase price is Rs 140.What are its future prospects and what kind of targets do you have in mind for this stock.

    Like

  5. Taranjit says:

    Dear Sir,

    I am regularly visiting your site and getting excellent insights about value company-picking. I sincerely congratulate you for your useful endevour. Best of luck for future also….great going..

    Like

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