Buy Eveready Industries India, target Rs 530: Kotak Securities Limited

Kotak Securities Limited has a buy call on Eveready Industries India with a target price of Rs 530.

The current market price of Eveready Industries India is Rs 378.90.

Time period given by the brokerage firm is a year when Eveready Industries India price can reach defined target.

"Eveready Industries India reported Q3FY18 revenue slightly below our estimate due to muted growth in battery and flashlight business. Tax expense at Rs 58 mn against tax credit of Rs 66 mn in Q3FY17 led to 40 per cent YY decline in PAT reported at Rs 209 million. Management reiterated positive view on the core business viz. battery & lighting business and expects continued momentum going ahead driven by structural positives brought by the GST regime. Small home appliances business continues to achieve larger reach. We reiterate our long term positive view on EIIL; expect significant earnings improvement in FY19/FY20 driven by 1/ exponential growth in consumer kitchen appliance segmented supported by deeper penetration on the lower base 2/sustenance in demand for batteries in the domestic market and company retaining its leadership position in the segment and 3/ market share gain in lighting & flashlight business. We maintain BUY recommendation with an unchanged target price of Rs 530," Kotak Securities said in a report.