Wrote this post Q1 fy21.
In last two quarters, Everest Industries has made ebitda of 45crs vs 60crs in base period. So, I am trying to ignore the flat quarter, as there was some unfulfilled demand of previous qtr. The co, is cautiously optimistic, given the good rains and harvest. Emphasis by PMAY on concrete roof did impact business in recent years, but looking at the delay in payouts relating to this scheme, they think that now the govt will be neutral to choice of roofing.
I liked their new branding & promotion strategy. Now they portray use of Everest roofing product to be a matter of pride (think owners’ pride, neighbours’ envy), rather than mere product benefits. They are using clients/ dealers to promoter videos via whatsapp, or facebook. Maybe a small point, but they are thinking.
Products are – roofing (asbestos sheets), boards and pre-fabricated steel structures, mainly for factories/warehouses.
** Will not say wow, as cyclical (possibly staring at an upturn right now), 10 year ROE is 12% and 0.7x book. One thing, I must say that their profitabilty metrics over 10-15 years have been better than most of the cement sector, ex Shree Cement. This holds true for Visaka and Ramco Industries too.