Short Havells, may see significant downside: Bhavin Shah

Bhavin Shah, CEO at Equirus Securities told CNBC-TV18, "We have come out with short rating on Havells India. We see significant downside. We believe that the premiums segment that they have successfully built their position in is not going to see a growth revival for sometime. They are now trying to enter some of the more economy segments in the electrical products and that is where they face lot of competition including new products from the original promoters of Anchor."

"We also feel that from cash flow generation perspective, they continue to invest in Sylvania, the overseas acquisition they did and we do not see any positive free cash flow from Sylvania. Therefore, compared to 24 percent earnings growth from FY07 to FY13, we see much lower growth. So, we see significant downside on that," he added.