Buy Havells India; target of Rs 1311: Geojit

Geojit is bullish on Havells India has recommended buy rating on the stock with a target price of Rs 1311 in its research report dated January 23, 2023.

Broker Research

January 23, 2023 / 16:59 IST

26 Aug, 2025 12:21

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Geojit's research report on Havells India

Havells India Ltd. (HAVL) is a leading player in electrical consumer goods in India. Its key verticals include switchgears, cables & wires, lighting fixtures, and consumer appliances. Revenue grew by 13% YoY, exceeding our expectation, aided by higher growth in cables & Lloyd. Due to higher costs, EBITDA margins fell by 180 bps YoY to 10.3%. But, on a sequential basis, margins improved by 250 bps, indicating gradual improvement going ahead. Cost pressure is likely to persist in the very short term due to volatility in RM prices and growing competition. We expect strong earnings recovery in FY24 as RM prices begin to normalise and revenue growth is likely to be supported by volume growth. We believe that the worst impact on margins is behind us.

Outlook

We value HAVL at a P/E of 43x (14% discount to 5-year avg.) as we roll forward to FY25E and upgrade our rating to BUY from SELL with a target price of Rs.1,311.

For all recommendations report, click here