✅ At a Glance
| Metric | FY25 | YoY Change |
|---|---|---|
| Revenue from Operations | ₹1,723 Cr | 🔻 ~5% YoY drop |
| Net Profit / (Loss) | ₹(36.1) Cr | 🔻 From profit to loss |
| EPS | ₹-2.28 | 🔻 vs +₹1.45 last year (est.) |
| CMP (20 May 2025) | ₹502 | 📉 Down from ₹550+ |
| Fair Value (Est.) | ₹327 | ❌ Overvalued at CMP |
The only thing Everest built this year was tension. Cement sheets are stable, but profits? Evaporated like water on a hot tin roof.
🧱 About the Company
Everest Industries Ltd is one of India’s largest building products and roofing material companies — the OG of:
- 🏠 Fibre cement roofing sheets
- 🧱 Wall boards and panels
- 🏗️ Pre-engineered buildings (PEBs)
- 🏡 Home solutions (cement boards, wood finishes)
It’s the company behind your chawl’s roof, your sheds, and probably that warehouse your VC-funded startup was renting before it got shut down.
📊 FY25 Financial Snapshot
| Item | FY25 (₹ Cr) |
|---|---|
| Revenue from Operations | ₹1,723.6 |
| Other Income | ₹12.7 |
| Total Income | ₹1,736.3 |
| Total Expenses | ₹1,765.1 |
| Net Profit / (Loss) | ₹(36.1) |
| EPS (Diluted) | ₹-2.28 |
📉 Operating at a full-year loss, despite strong top line = classic margin compression + overhead drag
🧾 Segment Revenue (Breakdown)
While Everest doesn’t publish ultra-granular segments, their biz splits roughly into:
| Segment | Est. Revenue Share |
|---|---|
| Building Materials | 55% |
| Roofing (Fibre Cement) | 35% |
| PEB & Infra Solutions | 10% |
The decline is likely driven by:
- Lower rural demand (esp. roofing)
- Inflation in input costs (asbestos, cement fibre)
- Weak infra orders from govt capex cycle slowdown
🧮 Forward Value (FV) Estimate
Let’s apply a conservative logic (based on normalized EPS of ₹10 in a recovery year):
- Target P/E = 15
✅ FV = ₹10 × 15 = ₹150
BUT current EPS is negative (₹-2.28), so you’re paying ₹502 for a stock that lost money this year.
➡️ Clearly overvalued unless you believe FY26 will be a big comeback year.
💸 Balance Sheet Snapshot
| Item | Value (₹ Cr) |
|---|---|
| Equity Capital | ₹15.8 Cr |
| Reserves & Surplus | ₹623 Cr |
| Borrowings | ₹212 Cr |
| Cash | ₹11.7 Cr |
| D/E Ratio | 0.34x |
| Trade Receivables | ₹173 Cr |
| Inventory | ₹239 Cr |
Financials aren’t terrifying. But they aren’t growth-worthy either.
💰 Cash Flow View
| Flow Type | ₹ Cr |
|---|---|
| Cash from Ops | ₹32.2 |
| Capex | ₹(32.6) |
| Free Cash Flow | ₹-0.4 |
| Net Cash Flow | ₹-4.4 |
Capex-funded via internal cash — good discipline. But not enough free cash to scale or excite.
🧨 Why Did Profit Fall?
- 📉 Input cost inflation
- ❌ Demand stagnation (esp. rural roofing)
- 📦 Inventory pile-up
- 🧾 Fixed overheads not scaling with revenue
- No price power in competitive B2B infra
🧠 EduInvesting Take
“Everest is literally in the business of building shelters — maybe it should’ve built a shelter for its own profit margins.”
The business is sound. The brand is strong. But the valuation is unjustified at ₹500+, especially with FY25 in the red.
This is a classic value trap unless you catch it at ₹250–300 during a deep capex upcycle.
🏁 Final Verdict
✔️ Brand recall in core rural + B2B sectors
✔️ Infra revival proxy
❌ FY25 loss, EPS negative
❌ No near-term growth narrative
❌ CMP ₹502 = overpriced given fundamentals
“If you believe rural roofing and warehousing will boom in FY26 — wait for a ₹150–200 entry.
Else you’re just buying nostalgia… at a premium.”
Tags: Everest Industries FY25 results, EPS -2.28, fibre cement stocks India, roofing sheet companies, undervalued infra stocks, loss-making NSE stocks, EduInvesting coverage, fair value ₹327
