Hold Havells India; target of Rs 253: ICICIdirect

ICICIdirect.com has recommended to hold Havells India with a target price of Rs 253, in its research report dated January 29, 2015.

February 03, 2015 / 12:42 IST

26 Aug, 2025 12:21

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ICICIdirect.com's report on Havells India

Havells India’s (HIL) standalone revenues increased ~5% YoY to Rs 1247 crore in Q3FY15 supported by ~12% YoY growth in electronic consumer durables (ECD) segment. However, slackness in industrial activities hit revenue growth of cable & switchgear segments that grew 4% YoY and 6% YoY, respectively. Lighting segment recorded a flat performance due to de-growth in non-LED segment

Change in product mix coupled with saving in raw material cost and advertisement & promotion expenses (A&P) helped an improvement in EBITDA margins by 11 bps YoY to 14.5%

Decline in other income, along with higher depreciation charges and tax rate hit the bottomline as it recorded a decline of ~4% YoY during Q3FY15 The performance of Sylvania remained under pressure in Q3FY15 as revenues declined ~1% YoY to €110.8 million while it reported an operating loss of €0.5 million after the €6.1 million provisioned for pension liabilities and one-time expenses of €2.9 million. It recorded a loss of €10.7 million against net profit of €1.7 million during Q3FY14

"At the CMP, the stock is trading at a PE multiple of 29x FY16E and 24x FY17E. We have valued the stock using sum of the part method and value the standalone business at 22x FY17 EPS and Sylvania’s business at 5x FY17 EV/EBITDA and arrived at a target price of Rs 253. We expect Havells to record revenue, earning CAGR of 10%, 6% for FY14-17E, respectively", says ICICIdirect.com research report.