🧱 Everest Industries Posts ₹36 Cr Loss in FY25 – EPS ₹-2.28 Despite ₹1,723 Cr Revenue. Is This the Bottom or Just a Pothole?

🧱 Everest Industries Posts ₹36 Cr Loss in FY25 – EPS ₹-2.28 Despite ₹1,723 Cr Revenue. Is This the Bottom or Just a Pothole?

✅ At a Glance

MetricFY25YoY 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

ItemFY25 (₹ 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:

SegmentEst. Revenue Share
Building Materials55%
Roofing (Fibre Cement)35%
PEB & Infra Solutions10%

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

ItemValue (₹ Cr)
Equity Capital₹15.8 Cr
Reserves & Surplus₹623 Cr
Borrowings₹212 Cr
Cash₹11.7 Cr
D/E Ratio0.34x
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

Prashant Marathe

https://eduinvesting.in

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