Buy Havells India; target of Rs 656: HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on Havells India

Havells’  core  business grew remarkably well with revenue/EBITDA growth of 18/24%  YoY.  While,  Lloyd  disappointed  with flat revenue growth (11% in FY18)  in  its  seasonal  quarter.  However,  Lloyd’s EBITDAM of 12.4/8% in 4Q/FY18 vs. ~6% in FY17 was encouraging.The  company  justified  its  core  competence by delivering revenue/EBITDA growth  of  13/14%  YoY in a challenging year. We continue to be optimistic for  Havells  core business growth, owing to improving consumption dynamics along with superior execution capabilities.

Outlook

We  expect revenue/EBITDA CAGR of 15/22% over FY18E-20E. For Lloyd, we expect revenue/EBITDA CAGR of 15/28% over FY18E-20E. We  value  based  on  36x P/E on Mar-20EPS and arrive at a TP of Rs 656. We maintain BUY.For all recommendations report, click here

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