Hold Havells India; target of Rs 1209: Emkay Global Financial

Emkay Global Financial's research report on Havells India

HAVL reported PAT ahead of consensus/our estimates supported by better performance in the Wire & Cables segment and lower loss at the Lloyd level. Sales growth of 13% YoY was on the back of 30%/17% growth in the Lloyd/Cable segments, respectively. Cable EBIT margin came in at 11.5% vs 10.4% YoY and 6.3% QoQ. EBIT loss at Lloyd stood at Rs600mn vs loss of Rs830mn QoQ. While B2B demand was supported by demand from the Infrastructure and Industrial segments, B2C demand has been impacted by retail inflation.

Outlook

We maintain HOLD on the stock, with Dec-24 TP of Rs1,209/share (Rs1,190 earlier), as we roll forward our valuation. We cut our FY24E/FY25E EPS by 3-5%, largely to account for the slower recovery in Lloyd. Mgmt continues to focus on increasing sales of Lloyd.

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