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
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
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