Havells India Ltd shares rose on January 20 even as firm's net profit fell marginally in the December quarter.
The home appliances maker's profit fell to Rs 283 crore in the three months ended December 31 from Rs 288 crore a year earlier.
Havells' revenue from operations rose nearly 11% to Rs 4,883 crore, while total expenses climbed 12.3% to Rs 4,564 crore.
At 1:35 pm on January 20, Havells India shares were trading 1.5% higher at Rs 1,598 apiece.
The performance reflected strong demand from its switchgear project business but faced inventory de-stocking in wires during Q3. This had an impact on margins due to an inferior product mix, alongside price deflation in the lighting segment. Lloyd performed well, with losses narrowing, but the stock trades at high valuations of 58x FY26e.
Havells India’s subsidiary, Lloyd, posted a strong performance with a narrowing of its losses. However, analysts have raised concerns about the stock's valuation. Currently trading at a high 58x FY26e, Havells has seen its target price revised down by Motilal Oswal Financial Services, Nomura, and Nuvama, following its earnings miss. Nomura lowered its target price to Rs 1,943 from Rs 1,990 per share but upgraded its rating on the stock to 'buy' from 'neutral'. The brokerage expects growth momentum to pick up, projecting a recovery in Havells India's growth, excluding the Lloyd segment, to 17-18 percent over FY26 and FY27.
The company’s growth is expected to be driven by new capacities in cables, steady demand in wires, and a trend toward premiumisation in electric cables.
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