Buy Havells India; target of Rs 660: JM Financial

JM Financial's research report on Havells India

Havells reported robust 1QFY19 results with strong growth across product categoriescoupled with margin expansion. While Havells (ex-Lloyd) revenue/EBITDA grew 22% YoY(like-to-like)/37% YoY, Lloyd reported 14% like-to-like sales growth (vs. 10% FY19guidance). We continue to believe in Havells’ endeavours to expand its distribution (includingB2B/Enterprise scale up) and product portfolio; also, brand building (spent INR 1.2bn in1QFY19; +57% YoY) would go a long way in improving its growth trajectory as macrosimprove in the medium term.

Outlook

We maintain BUY with a TP of INR 660.