Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strong performance in cables and wires, tempered by margin pressures.
Basis of our Recommendation
Havells India is experiencing moderate growth driven by strong performance in cables and wires, although it faces margin pressures and mixed demand in consumer segments. The company is expected to recover in FY27 with favorable conditions and price hikes, despite ongoing challenges in demand recovery and cost pressures.
Why We Like This Stock
- Strong performance in cables and wires driving moderate growth
- Expected recovery in FY27 with favorable conditions and price hikes
- Potential for demand recovery in consumer segments
Things To Watch Out For
- Margin pressures from raw material costs
- Mixed demand in consumer segments impacting growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 18,590 | 21,778 | 22,528 | 25,345 | 28,575 |
| Profit Before Tax (Cr.) | 1,697 | 2,005 | 2,255 | 2,426 | 2,733 |
| PBT Margin | 9.1% | 9.2% | 10.0% | 9.6% | 9.6% |
| Net Profit (Cr.) | 1,259 | 1,499 | 1,782 | 1,908 | 2,149 |
| EPS | 20.1 | 23.9 | 28.4 | 30.4 | 34.3 |
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.