Buy Havells India; target of Rs 725: Bonanza

Bonanza is bullish on Havells India has recommended buy rating on the stock with a target price of Rs 725 in its research report dated October 15, 2018.

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October 15, 2018 / 16:29 IST

26 Aug, 2025 12:21

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Bonanza's research report on Havells India

Recently, the stock price of Havells India Ltd. (Havells) corrected by ~18% from 52-week high of Rs.729despite reporting good set of numbers in the recent quarter. Havells is one of the fastest growing fan brands in the Indian market with market share at ~17% while in the switchgear market, it is the market leader in the low voltage segment with ~28% market share. Over the period, Havells has established a network of ~7,500 dealers spread across the four regions servicing ~100,000 retailers/touch points in India. It is highly successful in augmenting market share of existing products along with launching new products, which have received good response driven by high brand visibility. Recently, Havells has acquired the consumer segment of Lloyd Electricals, which gave Havells access to Lloyds' strong distribution network with 10,000 touch points along with leadership in room AC segment with 12-14% market share. Havells is well placed to benefit from pick up in the construction sector and rising premiumization owing to its dominant position in core business.

Outlook

With fastest growing fan brands in the Indian market, well established dealers network, acquisition of consumer segment of Lloyd Electricals, setting up a manufacturing facility for ACs, brand recognition due to advertisement expenditure and recovery in demand for switchgear and cable & wire,we value Havells at 48.00x FY20E EPS of Rs.15.10 to arrive at target price of Rs.725.00, an upside of ~22%.

For all recommendations report, click here