Geojit has given Buy recommendation for Havells India with a target price of Rs. 1245 in its research report issued on Jun 20, 2022

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. HAVL focus is on improving product mix, expanding distribution strength and gaining market share. Revenue growth to remain healthy on account of uptick in infrastructure investment and revival in real estate sector and discretionary demand. Prices of key raw materials including copper remained elevated for past ~1 year is impacting margins, which is expected to take some more time to normalise.

Outlook

However, with gradual price hikes and cost rationalisation, the impact on margins will reduce. Given healthy earnings outlook & strong balance sheet, we value HAVL at a P/E of 45x on FY24E. Given healthy correction, we upgrade to BUY with target price of Rs.1,245.

More Info

At 15:40 hrs Havells India was quoting at Rs 1,072.20, up Rs 3.60, or 0.34 percent.

It has touched an intraday high of Rs 1,084.50 and an intraday low of Rs 1,058.70.

It was trading with volumes of 12,130 shares, compared to its thirty day average of 25,916 shares, a decrease of -53.20 percent.

In the previous trading session, the share closed down 2.25 percent or Rs 24.55 at Rs 1,068.60.

The share touched its 52-week high Rs 1,503.70 and 52-week low Rs 958.35 on 18 October, 2021 and 21 June, 2021, respectively.

Currently, it is trading 28.7 percent below its 52-week high and 11.88 percent above its 52-week low.

Market capitalisation stands at Rs 67,174.19 crore.

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