Buy Havells India; target Rs 829: Motilal Oswal
Brokerage house Motilal Oswal is bullish on Havells India (HAVL) and has recommended buy rating on the stock with a price target of Rs 829, in its research report dated June 17, 2013.
June 19, 2013 / 15:38 IST
Motilal Oswal's research report on Havells India (HAVL)
"Havells India (HAVL), consumption demand in India has started witnessing slowdown, and this is also being reflected in the revised FY14 expectations of 14-15 percent revenue growth for HAVL (vs earlier expectations of ~15-20 percent). These expectations factors in stable revenues in industrial cables (20 percent of standalone revenues), and thus the consumer centric business is expected to witness strong growth rates of ~17- 18 percent. These are being driven by i) Reo switches (expect FY14 sales at INR1.2-1.5b, vs INR340m in FY13) and ii) appliances (possibility of 30 percent+ revenue growth on FY13 revenues of INR1.8b).""Still consumer centric businesses of Havells India (HAVL) should report 17-18 percent growth rates driven by new launches. Sylvania impacted by demand headwinds in Europe and currency volatility in LatAm. Key markets of: Brazil / Columbia (4 percent YoY currency depreciation vs USD) and Argentina (17 percent) contributing 50-55 percent of LatAm revenues witnessing increased currency volatility. HAVL is consolidating its 'economic moat' by strengthening presence around dealers, and extending the reach to electricians / direct consumers. Maintain Buy, Price Target INR829 (Standalone business at 18x PER FY15E, Sylvania 8xEV/EBIDTA FY15E)," says Motilal Oswal research eport.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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