Buy Havells India; target of Rs 564: Edelweiss

Edelweiss' research report on Havells India
While we revise down FY18/19E EPS ~2.5% each building in Q1 impact, we expect HAVL to do much better in coming quarters given strong underlying demand outlook (refer Consumer Durables - Home Run) and gradual transition of Lloyds’ business. Maintain ‘BUY’ with revised TP of INR564 (INR575 earlier).

Outlook
We believe, management has significant potential to drive business growth / profitability as the company expands its distribution and product portfolio catering to tier III/IV/V cities. Also, we expect earnings surprise, especially from FY19E in the Lloyds business. We maintain ‘BUY/SO’.

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