Hold Havells ; target of Rs 315:ICICIDirect

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

ICICIDirect's research report on Havells Havells reported its Q3FY16 standalone numbers wherein the toplineincreased ~8% YoY to | 1344.5 crore supported by ~11% YoYgrowth in the domestic business. However, export revenues declined36% YoY due to sharp currency devaluation in Africa and decline inexports in SylvaniaThough industrial and domestic cables registered 29%, 9% YoYvolume growth, respectively, aggressive price cuts on the back of acommodity price decline resulted in 6% YoY sales growth. LEDlighting sales jumped 100% (contributes ~50% to lighting revenue)while 47% YoY drop in export restricted lighting & fixtures salesgrowth at 9% YoY. The switchgear segment was marred by 37%YoY drop in export revenue. However, better festive demand droveelectrical consumer durable sales by 23% YoYLower commodity prices offset higher employee expenses (up 21%YoY), A&P spend (up 73% YoY) in quarter. This coupled with highertax outgo restricted net profit growth at 4% YoY to | 120.8 crore At the CMP, the stock is trading at a PE multiple of 29x FY17E and 25xFY17E. We believe divestment of its loss making unit and realisation of~| 1070 crore would improve the quality of the balance sheet as on astandalone basis the company is debt free. We expect Havells(standalone) to record revenue, earnings CAGR of 11%, 18% for FY15-18E, respectively. We value company at 26x FY18E EPS and maintain ourtarget price at | 315 with HOLD rating.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More