MEGA TURNAROUND STORY :::::::::::: EON ELECTRIC LIMITED (POTENTIAL 3X)

 

 

Eon Electric started operation in 1958 with LT switchgear as Indo Asian Fusegear. The company name was changed to “Eon Electric Limited” in 2011. After the sale of switchgear division, company acquired two factories at Haridwar for setting up plants for LED lighting, mobile phone accessories, lithium – ion batteries, electrical fans and Geysers.

Company Profile

Eon Electric specializes in manufacturing and marketing a wide range of best high-tech electrical products, such as Lighting & Luminaires, world-class Fans, Modular Switches, Wires & Cables, Geysers and Mobile Accessories. It has state-of-the-art manufacturing plants in Haridwar, using world-class technology and quality checks. With a deep understanding of economic stimuli and customer needs, EON is determined to not only repeat its history of achievements. But also scale new heights of growth to become the nation's most preferred brand. And the energy behind people's smile.

 

 

 

 

 

 

 

Diversification of Business: 

Batteries/Chargers
LED Lightings
Wires and Cables
Fans 
Geysers

 

Eon was successful in securing government orders to replace conventional street lights in Aligarh and Jodhpur worth Rs.51 Crores. Further to completion of these orders EON got extended orders for 33K street lights in Jodhpur and also in Aligarh. Besides this, EON has also won the contract in Varanasi. The latest order they have got from the Rajasthan Governement which is worth Rs.40 crores to install LED street lights in other cities including Gangapur, Jaisalmer, Sri Ganga Nagar etc. 

As per the management, in next 3 years, there will be government contracts to replace 20 million street lights and Eon is expecting a bigger pie of that.

Retail Business

Eon’s retail business is also doing very well. They have dealers and retails outlets in every state of India.

Retail Outlets 1,25,000+
Channel Partners 900+

Eon has tied up with Flipkart, Snapdeal, Amazon etc. for selling their products online. Retail LED business is also doing exceptionally well.

Export

Eon has tied up with European LED makers OMS with whom they have also started a company in India which manufactures high quality light fixtures in India and other Asian countries. If management commentary to be believed Eon is going to start exporting their LED lights in Europe through their partner.

FINANCIAL ANALYSIS

RESERVES 107Cr

INVESTMENTS IN MF 62 Cr

MCAP 117 Cr

BOOK VALUE Rs.72

EPS Rs.2.30

**** BEST PART RESERVES + MF INVESTMENTS COMES 160 Cr ........ That Means You getting Electrical business Free of Cost at Current Valuations.

RECENTLY

 Promoters have allotted convertible warrants (~8 lakh shares) to themselves at exercise price of Rs.66.5

UP GOVERNMENT AGGRESSIVELY WORKING TO PROVIDE 24 Hrs ELECTRICITY 

We See 100% UPSIDE from Current Price in 6 Months