stock to watch

Stock to watch
Eveready Industries
Last week’s close (Rs)
66.8
Prev. week’s close (Rs)
60.2
Week’s high (Rs)
69.6
Week’s low (Rs)
58.6
Last week’s ave. daily turnover (Rs cr)
5.5
Prev. week’s ave. daily turnover (Rs cr)
0.2
Number of up/down move
3/1
Battery major Eveready Industries could well be worth looking since its phenomenal move on the bourses last week. After touching its 52-week low levels of Rs 58 on Thursday, the stock rebounded sharply to Rs 67 levels closing with a weekly gain of 11 per cent.
Moreover, the stock has seen a continous upside in its closing price with a consistent rise in volumes. The stock has been a major underperformer in the last one year mainly due to its weak financials in the last few quarters led by the rising input costs (read soaring zinc prices in the year 2006) and the company’s inability to pass on the entire costs.
However, the worst seems to be over and the situation is expected to improve going forward as the demand is expected to be robust and zinc prices are unlikely to touch skyrocketing levels again. Eveready commands a 44 per cent market share in the dry cell battery market.

source-BS