Originally posted by smartcat
Don't know much about batteries - but topline is stagnant probably because this company's products are perhaps used by old school Zinc Carbon batteries.
Modern alkaline batteries like Duracell probably don't need these carbon rods? |
This is an ancillary company for the novino and everready kind of companies. But the majority of market share in India still rests with these companies. You will find them at every kirana store while duracell will be available at select outlets.
The company faces problems due to import of carbon rods by some dry cell battery manufacturers. Last year, instead of reducing margins/suffering losses they reduced production. They also mention that they have the infrastructure in place to cope with increased demands.
Basically as I mentioned earlier, this is more about value investing and not much growth. Growth if it comes through could be icing on the cake.
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