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Last Updated : Oct 26, 2017 03:29 PM IST | Source: Moneycontrol.com

Buy Havells India; target of Rs 564: Edelweiss

Edelweiss is bullish on Havells India has recommended buy rating on the stock with a target price of Rs 564 in its research report dated October 23, 2017.

 
 
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Edelweiss' research report on Havells India


Cables & wires and switchgears posted low single digit value growth, which adjusted for commodity price rise, seems to have de-grown in Q2FY18, purely attributed to deferred re-stocking by channel partners. However, in consumer durables and Lloyd segment (70% ACs) growth was slightly lower at 11% YoY (net of excise) despite the festival quarter this year.


Outlook


We believe Havells with its best coverage (>85%) of the consumer durables/electricals market is well geared to reap the benefits of rising penetration/premiumisation over next 3-5 years. Moreover, with rising focus on tier-III/IV cities, we expect Havells to post better-than industry growth going ahead. At CMP, the stock trades at 37x FY19 PE.

First Published on Oct 25, 2017 03:40 pm
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