Buy Havells India; target Rs 790: Emkay
Brokerage house Emkay Global Financial Services is bullish on Havells India and has recommended buy rating on the stock with a target price of Rs 790 in its June 21, 2013 research report.
June 24, 2013 / 16:33 IST
Emkay's research report on Havells India
"Havells India, reiterates the focus on its three pillars of growth: In-house Manufacturing, Branding and Distribution. Expect these drivers to ensure sustainable future growth. Key Positives - New products, rising exports, brand transfer to Havells India and reduction in acceptances. Key Negatives - Sluggishness in industrial cables and muted growth in Sylvania. No deviations versus erstwhile assessment. Transiting into consumer focused electrical goods company."No deviations were noticed in Annual Report 2013 versus our erstwhile assessment. We have forecasted domestic revenue growth of 15-16% and pegged EBIDTA margins sustenance at 12.5-13% for FY14/15E for Havells operations . With regard to Sylvania, despite certain growth concerns; cost levers and interest cost reductions are expected to drive earnings growth. We have estimated flat revenue growth over FY13-FY15E, while we expect EBITDA margins of 5.5-6% in FY14E/15E for Sylvania operations . We maintain a buy rating on Havells with a price target of Rs 790," says Emkay Global Financial Services research report.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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