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
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+
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
Looks good
ReplyDeletevery nice
DeleteNeed research
ReplyDeleteSir, i have a question after reading your above post. in balance sheet Equity + liability = Asset, and reserve is a party of shareholders equity then is it correct to added reserve with cash (MF) like you mentioned above. Isnt there some chance of duplication if you add both as you did in your post. this qusetion came to my mind as reserve is a part of shareholders equity and cash (+investment) a party of asset and both of them come on either side of the above equation. please clarify.
ReplyDeleteThat can be duplication as well but in balance sheet if u check reserves comes under one head and investments in another. still 107Cr reserves gives satisfation to investors ..... all electrical companies trades at 3-5x of its sales .....Eon last FY sales 172Cr ..... rest you are better judge.
DeleteDear Sir,
ReplyDeleteHappy Easter. May God bless you, your family and all your blog readers with good health and all the happiness in life.
IF we consider that point ranjan then also for a company like EON sales 172 Cr...107 Cr Reserves .....117 Cr Mcap is not justified........where all electrical companies trades at 3-5x of sales
ReplyDeleteThanks Sir for taking time to reply back and for the clarification
DeleteValuation comes into picture when company is making any profit. It is not even able to generate cash out of its operational activities. Even Director's Statement doesn't seem to be any promising. Also it is competing the in the segment where we have names of the likes of Philips, Surya, Osram, etc. Neither the top line seems to be improving much.
ReplyDeleteI don't understand the logic behind your recommendation. It would be better if you can shine some light on this. Correct me if I have missed something.
compounded sales growth 5 Years: 35.15%
ReplyDeleteTTM:18.32%
TURNAROUND STORY ....... CAPITAL EXPANSION DONE
Good
ReplyDelete• Key data to watch out today are Jobless Claim & Bloomberg Consumer Confidence Index.Commodity tips
ReplyDelete60 TO 150........WOW
ReplyDelete