Motilal Oswal is bullish on Havells India has recommended buy rating on the stock with a target price of Rs 820 in its research report dated January 22, 2019.
Motilal Oswal's research report on Havells India
Revenue grew 28% YoY to INR25b (our estimate: INR21.8b). Gross margin shrank 220bp YoY to 37.5%. EBITDA of INR2.95b (+12.3% YoY) was 6.2% ahead of our estimate. Ad spend increased to INR0.9b (3.6% of sales v/s 4% in 3QFY18), while employee costs rose 30% YoY to INR2.1b. Adj. PAT grew 18.3% YoY to INR1.9b, 5.8% above our estimate. For 9MFY19, sales/EBIDTA/PAT stood at INR73.1b (+30% YoY)/INR8.7b (+33% YoY)/INR5.8b (+33% YoY).
Maintain Buy with a TP of INR820 - exit multiple of 43x Mar'21E EPS (15% premium to five-year average).
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