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Last Updated : May 21, 2018 06:02 PM IST | Source: Moneycontrol.com

Buy Havells India; target of Rs 656: HDFC Securities

HDFC Securities is bullish on Havells India has recommended buy rating on the stock with a target price of Rs 656 in its research report dated May 12, 2018.

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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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First Published on May 21, 2018 06:02 pm
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