Havells India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Havells India is currently navigating a challenging landscape characterized by margin pressures and muted volume growth, primarily due to raw material price volatility and intense competition. Management's focus on long-term growth through a significant capital expenditure program, particularly in the Cables & Wires division and the emerging Renewables sector, is crucial for future revenue acceleration. Despite current headwinds, including elevated advertising costs and competitive pressures, the company anticipates a recovery in margins as recent price hikes take effect and marketing expenditures normalize. Vista's financial outlook reflects expectations of accelerating revenue growth beyond historical trends, although margins are projected to remain under pressure. The favorable macro environment, with strong manufacturing activity and stable inflation, supports Havells' strategic initiatives. Over the next 12-24 months, key opportunities include expanding the Renewables segment and enhancing distribution efficiency, while watchpoints include commodity price fluctuations and execution risks associated with capacity expansions. Overall, while the near-term outlook is cautious, the long-term growth trajectory remains supported by strategic investments and a diversified product portfolio
Why We Like This Stock
- Significant capital expenditure in the Cables & Wires division and Renewables sector supports future revenue growth
- Management's focus on premiumization and market share gains is expected to enhance competitive positioning
- A favorable macroeconomic environment with stable inflation and strong manufacturing activity bolsters growth prospects
Things To Watch Out For
- Ongoing margin pressures due to raw material price volatility and high advertising expenditures
- Execution risks related to distribution channel realignments and capacity expansions may impact short-term performance
- Intense competition in core segments could hinder market share recovery and profitability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 18,590 | 21,778 | 22,528 | 23,767 | 27,054 |
| Profit Before Tax (Cr.) | 1,697 | 2,005 | 2,255 | 1,772 | 2,306 |
| PBT Margin | 9.1% | 9.2% | 1001.0% | 7.5% | 8.5% |
| Net Profit (Cr.) | 1,259 | 1,499 | 1,782 | 1,394 | 1,814 |
| Earnings Per Share | 20.1 | 23.9 | 28.4 | 22.2 | 28.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 1,379 | 20-Jul-2026 |
| CLSA | ▲ Buy | 1,535 | 23-Apr-2026 |
| Citigroup | ▲ Buy | 1,500 | 19-Jun-2026 |
| Elara Capital | ► Accumulate | 1,375 | 18-Jul-2026 |
| Goldman Sachs | ▲ Buy | 1,400 | 20-Jul-2026 |
| HDFC Securities | ► Add | 1,470 | 23-Apr-2026 |
| HSBC | ▲ Buy | 1,550 | 10-Jul-2026 |
| ICICI Securities | ▲ Buy | 1,615 | 23-Apr-2026 |
| Kotak Securities | ► Add | 1,325 | 20-Jul-2026 |
| LKP Securities | ▲ Buy | 1,400 | 21-Jul-2026 |
| Macguire | ▲ Buy | 1,588 | 23-Apr-2026 |
| Moneycontrol | ► Equalweight | nan | 20-Jul-2026 |
| Motilal Oswal | ► Neutral | 1,220 | 20-Jul-2026 |
| Nomura | ► Neutral | 1,361 | 23-Apr-2026 |
| Prabhudas Liladhar | ► Accumulate | 1,319 | 20-Jul-2026 |
Company Overview
Show Company Profile
Havells India Limited, a fast-moving electrical and electronic durables company, manufactures, trades in, and sells various consumer electrical and electronic products in India and internationally. The company operates through six segments: Switchgears, Cables, Lighting and Fixtures, Electrical Consumer Durables, Lloyd Consumer, and Others. It offers switches; switchgears, such as circuit breakers, energy savers, human safety equipment, distribution boards, surge protection devices, and control and monitoring devices, as well as magnetic contractor, thermal overload relays, switchgear, circuit breakers, and starters; lighting products; and home appliances, including air conditioners, LED televisions, washing machines, refrigerators, air coolers and purifiers, appliances, personal grooming products, water heaters and purifiers, and geysers. The company also provides flexible, power, control, and fire survival cables; fans comprising ceiling, table, pedestal, wall, ceiling mounting, personal, and domestic exhaust fans; centrifugal, mono block, submersible, borewell and sewage submersible, pressure, and shallow well jet pumps; dishwashers; air circulators; and heavy-duty exhaust fans. In addition, it offers crane duty, smoke, brake, inverter duty, and energy motors; solar rooftop on grid, solar off grid, and solar on grid inverter solutions; power solutions, including power capacitors, IOT enabled IPFC relays, HD harmonic detuned reactors, IOT enabled APFC panels, and high PIV thyristor switches; and smart home automation solutions that connects lights, curtains, air conditioners, and other devices to control them through smart phone, tablet or wall panel, as well as smart modular switches and accessories. The company offers its products under the Havells, Lloyd, Havells Crabtree, REO, and Havells Studio brands. Havells India Limited was founded in 1958 and is based in Noida, India.