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.
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.
OutlookWe 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
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.