HomeNewsBusinessStocksBuy Havells India; target of Rs 640: Edelweiss

Buy Havells India; target of Rs 640: Edelweiss

Edelweiss bullish on Havells India has recommended buy rating on the stock with a target price of Rs 640 in its research report dated July 20, 2018.

September 18, 2018 / 15:15 IST
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Edelweiss' research report on Havells India

Havells India (HAVL) began FY19 with a bang—robust spurt across segments driving PAT beat versus consensus: Key highlights: a) strong growth in switchgears and cable & wires on a low base; b) sharpened management focus leading to ECD and Lloyd clocking better-than-expected numbers; and c) improvement in profitability due to multiple factors—better pricing in AC & switchgears and strong spurt in premium fans.

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Outlook

We retain HAVL as our top pick given: i) 96% market coverage; ii) strong focus on premium segments; and iii) reasonable upside from the Lloyd business over the medium to long term—early benefits apparent. Maintain ‘BUY’ with INR640 TP (maintaining 18% premium to sector).